VALID FOR EU ONLY!!!
BENEFITS FOR IMPORTERS:
If you import 10 containers per month and average value of goods is EUR 30.000 your cash flow would increase for *132.000 EUR. This are your liquid assets being used for crediting your country.
* Calculation is based on 22% VAT and VAT return time of 60 days
What do I need as an Importer to use Procedure 42 for my containers?
For goods imported and released for free circulation in a Member State, VAT is payable in the said Member State. If it is known upon import that the goods imported are going to another Member State, VAT is paid/charged in the Member State of final destination. The goods are exempt from the payment of import VAT on the basis that the import is followed by a tax-free intra-Community supply or transfer of goods to another Member State.
This procedure is known as “customs procedure 42”. In such cases, the importer of goods must enter the code starting with number 42 in Box 37 of the Single Administrative Document. This means that the import represents a “simultaneous entry to home use and release for free circulation of goods exempt from the payment of VAT as onward supply to another Member State”.