What is customs procedure 42?
Customs procedure 42 is a mechanism that an EU importer can use to obtain a VAT exemption. It is applied when goods imported from outside the EU into a Member State will be transported to another EU Member State. In such cases, the VAT is due in the latter – the Member State of destination.
The customs procedure 42 consists of two parts:
- the importation of the goods from a non-EU State to a Member State 1, which is VAT exempt; and
- the subsequent intra-Community supply of the goods from Member State 1 to Member State 2, which is taxed at a 0% VAT rate.
Consequently, the import of goods to Member State 1 (country of import) is VAT neutral.
Source Customs Clearance
Latest Posts in "European Union"
- Recent ECJ and General Court VAT Jurisprudence and Implications for EU Compliance – March 2026
- Comments on T-221/25: EU General Court confirms (former) Belgian VAT treatment of travel outside the EU
- Agenda of the ECJ/General Court VAT cases – 1 Judgment, 2 AG Opinions till April 30, 2026
- EU Courts Reshape Transfer Pricing’s Impact on Indirect Taxes
- ViDA: Implementation ”Single EU VAT Registration” in the Member States
