What is customs procedure 42 and how does VAT-exempt import work?

Customs procedure 42 is an EU customs regime allowing goods imported from a third country into an EU Member State to be exempt from import VAT, provided the goods are immediately transferred to another EU Member State where they will be subject to VAT as an intra-Community supply. In practice, procedure 42 avoids double VAT payment: instead of paying import VAT in the country of entry and then seeking a refund, the importer pays VAT only in the final destination country. Requirements: valid EORI number; a subsequent and immediate intra-Community supply must exist; both the importer and the buyer in the destination country must have valid VIES-registered VAT numbers; goods must be physically transferred between Member States; the import declaration must show procedure code 42; the transaction must be correctly reported in Intrastat. For Switzerland: procedure 42 does not apply directly as Switzerland is not in the EU, but Swiss companies importing into the EU through one Member State for onward supply to another can benefit through a fiscal representative or EU subsidiary.

Related questions

What is the NCTS system and how does electronic customs transit work?

NCTS (New Computerised Transit System) is the IT system used across the EU, EFTA countries (Switzerland, Norway, Iceland, Liechtenstein) and other Common Transit…

How does customs clearance work in Switzerland?

Swiss customs clearance is the process of declaring imported goods to the BAZG, calculating duties and VAT, and authorising entry into the Swiss market. Step by step: 1)…

How much does customs clearance cost in Switzerland?

The total cost of Swiss customs clearance includes three components: 1) Customs duties — calculated by gross weight (CHF per 100 kg), not by value as in the EU. The…

How to ship goods from Italy to Switzerland?

To ship goods from Italy to Switzerland you need three elements: transport, customs clearance and documentation. The typical process involves: 1) Collection in Italy; 2)…

How does an authorised customs warehouse work in Switzerland?

An Authorised Customs Warehouse (DDA) is a BAZG-approved facility where imported goods can be stored without paying customs duties or import VAT until they are actually…