Germany’s Federal Ministry of Finance issued guidance on April 9, 2026, updating the VAT Application Decree on the VAT exemption for supplies of goods made before importation under Section 4 No. 4b of the German VAT Act.

The guidance clarifies that supplies of non-Union goods are VAT-exempt where the goods are in a special customs procedure and the customer, a subsequent customer, or their agent ends that procedure, for example through importation or re-export. The exemption may also apply to preceding supplies in a chain.

The updated rules cover non-Union goods held under special customs procedures, including transit, customs warehousing, temporary admission, end-use, and inward processing. The guidance also provides examples involving goods stored in customs warehouses, goods sold under duty-unpaid and tax-unpaid conditions, temporary admission for trade fairs, and inward processing.

The Ministry clarifies that the exemption does not apply where the supplier itself ends the special customs procedure by importing the goods. It also does not apply to services connected with goods under a special procedure, which must instead be assessed under separate VAT exemption provisions.

The guidance adds documentation requirements: businesses must be able to prove the conditions for the exemption clearly and easily from their records, including evidence of the goods’ non-Union status and, where relevant, confirmation that the customer or a later customer will end the special procedure.

The rules apply to all open cases. The previous BMF letter of January 28, 2004, is repealed effective April 9, 2026.