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Importation of goods en route to another EU country (“customs procedure 42”)

According to VAT Directive, the importation of goods is exempted from VAT if followed by a supply or transfer of those goods to a taxable person in another Member State.

This exemption enables the importer to avoid pre-financing VAT at the moment of the importation.

The VAT expert's eye

According to European Court of Justice, the exemption from import VAT may not be refused in respect of an importer designated or recognized as liable for payment of that tax, in which, first, the recipient of the intra-Community transfer of goods effected after that import commits tax evasion in connection with a transaction which is subsequent to that transfer and is not linked to that transfer and, secondly, there is no evidence to support the conclusion that the importer knew or ought to have known that that subsequent transaction entailed tax evasion on the part of the recipient (ECJ, 531/17, VESTSCH, 14/02/2019)

Maximize the Benefits of Customs Procedure 42 with Our Tax Advising Firm

Customs Procedure 42 can provide significant financial and operational benefits for businesses importing goods into the European Union (EU) that are en route to another EU country. Our tax advising firm can help you maximize these benefits and ensure compliance with the procedure.

Here are some reasons why you should contact us:

  • Our team of experts has extensive knowledge and experience in dealing with Customs Procedure 42, and can provide you with tailored advice and guidance to help you navigate the process.
  • We can help you gather and prepare the necessary documentation and evidence to demonstrate that the goods are en route to another EU country, ensuring a smooth and hassle-free customs process.
  • Our firm can provide you with ongoing support and advice to help you manage your cash flow and reduce your financial burden by deferring the payment of import VAT until the goods reach their final destination in the EU.
  • We can also help you stay up-to-date with the latest developments and changes in the customs regulations, ensuring that you remain compliant and can continue to benefit from Customs Procedure 42.

Don’t miss out on the benefits of Customs Procedure 42. Contact our tax advising firm today to learn more about how we can help you maximize the benefits of this customs procedure.

We offer a free video conference to assess your situation and provide you with a tailored solution.