Proposed Postponed Import VAT Accounting (PIVA) scheme in Germany

The proposed introduction of an import VAT offsetting mechanism marks a significant step toward simplifying the import VAT process. Following approval by the Conference of German Finance Ministers on September 10, 2026, businesses would no longer be required to pre-finance import VAT. Instead, import VAT would be directly offset against the corresponding input VAT deduction, reducing administrative complexity and improving cash flow, as import VAT would not need to be paid first and deducted/recovered later.

Similar systems are already successfully implemented in several other EU Member States, demonstrating the practical benefits of this approach for importing businesses.

At present, the proposal has not yet been enacted into law. Legislative changes at the German federal level, together with the necessary technical and administrative preparations, must be completed before the new regime can be introduced. Based on the current roadmap, the offsetting mechanism is expected to take effect from January 1, 2030.