Customs Clearance and Import Sales Tax when purchasing gold, jewelry, or carpets abroad

When carpets, gold, or jewelry purchased abroad are brought into Germany, they must be properly declared to customs. Additionally, the so-called import sales tax must be paid. Under certain circumstances, criminal prosecution can be avoided through a voluntary disclosure. Caution is advised if, after returning from your trip, you suddenly receive a call from the holiday country 'warning' you that customs and tax authorities might discover an undeclared souvenir. These are almost always highly sophisticated attempts at fraud.

Observe Customs Regulations and Duty-Free Allowance in Turkey

Jewelry, gold, and carpets purchased during travel must be declared to customs upon import into Germany

Up to an exemption limit of EUR 430.00, no customs duty or import sales tax is due. If this exemption limit is exceeded, import sales tax of 19% of the purchase price must be paid. For goods valued up to EUR 700.00, a lower flat rate for customs clearance and import sales tax may be assessed by the German customs authorities.

The following guidelines apply when purchasing jewelry in Turkey: For a purchase price of EUR 1,200.00 or more, according to the customs union between Germany and Turkey, you need written proof from the Turkish customs authorities that you acquired the product in Turkey. This proof is usually not available. The invoice from the Turkish dealer is not sufficient. Thus, without this proof, customs duties of 2.5% of the purchase price become due.

The exemption limits cannot be combined when several people travel together (e.g., spouses, children, etc.), as they apply to indivisible items. Furthermore, the exemption limits for young people are significantly lower. Also, the EUR 430.00 exemption limit is not applied to more expensive products.

Similar import regulations also apply in Northern Cyprus, Cyprus, Crete, Greece, Morocco, and Dubai.

The decisive factor for customs duty is the purchase price, not the value of the goods.

Import sales tax is based on the actual purchase price

Often, jewelry, gold, or carpets purchased in exotic countries are bought at significantly inflated prices. This is doubly frustrating, as customs duties and import sales tax are based on the actual purchase price, not the intrinsic value of the goods.

Only if the dealer and buyer subsequently agree on a reduced purchase price, or if individual items are not accepted, can this potentially be asserted with the customs authorities. In such cases, we recommend seeking advice from a lawyer.

Gold jewelry must be declared to customs.

Retrospective Claims for Undeclared Goods.

A retrospective claim for undeclared goods is possible

The undeclared import of items exceeding the respective exemption limits constitutes a criminal offense (tax evasion). Therefore, a retrospective claim is indeed conceivable. Immunity from prosecution can be achieved through a complete and proper voluntary disclosure, provided the disclosure is made before authorities become aware of the incident. The voluntary disclosure can be prepared by an experienced lawyer.

Jewelry Purchase with Consequences.

Fraudulent Calls

Clients frequently report receiving calls from the respective country after their vacation. The callers warn that German customs and tax authorities might become aware of the undeclared import of purchased jewelry. They often suggest that the matter can still be resolved if payments are made to the country where the jewelry was acquired. As plausible as these stories may initially sound, they are almost always fraud!

The callers illegally obtain customer data from jewelry dealers or tour operators who specifically send their travel groups to certain jewelry manufacturers (dealer directory). These addresses are then contacted on suspicion to exploit travelers' uncertainty regarding undeclared customs. In any case: Do not pay! An authority will never request payments over the phone.

If you receive such calls, contact a lawyer for advice.