Regime 42 (VAT-exempt import)
Procedure allowing VAT-exempt import of goods when they are destined for delivery to another EU Member State.
Regime 42 (customs procedure code 42 00) designates an import of goods with VAT exemption at import, when the goods are immediately subject to an intra-Community supply to another EU Member State. This mechanism avoids double taxation: VAT is paid neither in the importing country nor until final delivery in the destination Member State.
To benefit from Regime 42, the importer must demonstrate that the goods are dispatched to an identified buyer in another Member State, holding a valid intra-Community VAT number. The importer must themselves be VAT-registered in the importing Member State and be able to prove intra-Community transport.
This regime is particularly used in European logistics hubs (Netherlands, Belgium) where goods are cleared before redistribution throughout the EU. It represents a significant cash flow advantage for operators, who do not need to advance import VAT.
Regime 42 is subject to enhanced surveillance by tax authorities due to fraud risks (fictitious intra-Community supplies). The European Commission and Member States have implemented cross-checking mechanisms via the VIES (VAT Information Exchange System).