Diet 42 and Diet 63
Import procedures exempt from VAT: regime 42 for intra-community deliveries and regime 63 for re-imports followed by transfer.
Diet 42 and Diet 63
Regimes 42 and 63 are customs procedures allowing goods to be imported into an EU Member State exempt from VAT when they are immediately transferred to another Member State.
Diet 42
Importation in free circulation with exemption from VAT because the goods are subject to immediate exempt intra-community delivery to another Member State. The customs procedure code is 4200.
Diet 63
Reimportation with release for free circulation and VAT exemption, followed by intra-Community delivery to another Member State. It concerns goods which had been exported and then re-imported.
Common conditions
The importer must provide the valid intra-community VAT number of the purchaser in the Member State of destination, prove the actual transport of the goods to this State and comply with the reporting obligations (DEB/EMEBI).
Cash advantage
Regime 42 avoids advance VAT on import into the country of entry of the goods. For high value goods, the cash flow savings can be very significant.
Vigilance
Regime 42 is closely monitored by tax administrations due to recurring fraud (“VAT carousel”). The checks relate to the reality of intra-community transport and the validity of the purchaser's VAT number.