You know what's funny, the EU has an average VAT of 22%, which is literally just a tax.
The US has something between 2% and 10% sales tax depending on state, so if people just consider the tariffs like a bigger VAT then what's the difference?
The EU didn't collapse because of a 22% VAT, but all of sudden if we put some baseline tariffs in place that for most states won't even equate to the 22% VAT, that's the end of the world?
I mean vat is not exactly the same as tariffs because depending on the case you can get it fully back. Dont know how vats work on the us tho.
**Can you get the import VAT back?**
Yes, if you are a VAT-registered business and the goods are brought into the country for business use, you can reclaim the import VAT through your VAT return.
**How it works:**
1. You import goods from outside the EU (e.g., from the US or China).
2. You pay import VAT (usually 19%) to German customs.
3. Since you're a business, this VAT is not a real cost.
4. You can deduct the same amount as input VAT in your regular VAT return.
5. This reduces your total VAT payment or results in a refund.
**Requirements:**
- You must be the importer of record (your name must be on the customs documents).
- The goods must be used for business purposes.
**Example:**
- You import goods worth €10,000.
- You pay €1,900 import VAT to customs.
- You include €1,900 as input VAT in your next VAT return.
- The tax office refunds you or offsets it against your VAT liability.
In short: You pay import VAT at the border, but if you're a business and follow the rules, you get that money back through your tax return.