Does procedure 42 remove customs duty?

No. Duty is assessed and paid at import as normal. Only import VAT is not collected at the border.

Can a Czech company importing for its own warehouse use it?

Yes, where the goods move from Slovakia to Czechia and the Czech entity accounts for the acquisition VAT there. The onward movement can be to your own VAT number in the destination state.

What if the goods stay in Slovakia?

Then procedure 42 does not apply and Slovak import VAT is payable at the border in the normal way.

Customs

Customs procedure 42 explained

In short

Customs procedure 42 releases imported goods for free circulation in one member state while exempting import VAT, because the goods are immediately supplied to a VAT-registered customer in another member state who accounts for the VAT under reverse charge. Customs duty is still payable at the border. The exemption rests on Article 143(1)(d) of the VAT Directive 2006/112/EC.

Updated 20 August 2026 · Last reviewed 20 August 2026 · M. Homola, Founder, customs agent

Key takeaways

Duty is payable at import. Import VAT is not.
The goods must physically leave Slovakia to another member state.
The receiving customer must be VAT registered in the destination state and is named on the declaration with code Y041.
You need your own Slovak VAT registration to use procedure 42 with us at launch.
Keep the transport evidence. Procedure 42 has been abused and is audited.

What actually happens at the border

The declaration is lodged under customs procedure code 4200. Customs assess and collect duty in the normal way. Import VAT is not collected, because the import is exempt under Article 143(1)(d) of Directive 2006/112/EC on the basis that the goods are the subject of an immediate intra-community supply. The VAT is then accounted for by the buyer in the destination member state under reverse charge.

The conditions, in order

The importer holds a valid VAT identification number in the member state of import (declared with code Y040).
The customer in the destination member state holds a valid VAT identification number there (declared with code Y041).
The goods physically move from the member state of import to the destination member state.
The onward supply is reported on the recapitulative statement (EC Sales List).
Transport evidence is retained and can be produced on audit.

The declaration codes

Code	What it carries
Y040	VAT identification number of the importer in the member state of import
Y041	VAT identification number of the customer receiving the onward supply
Y042	VAT identification number of a limited fiscal representative, where one acts

What it is worth

On a consignment with a customs value of 80 000 EUR into a 20% VAT state, import VAT at the border would be around 16 000 EUR, reclaimed some weeks later. Under procedure 42 that money never leaves your account. Our calculator puts your own numbers through it.

We do not act as fiscal representative at launch. You must hold your own Slovak VAT registration to use procedure 42 with us.

Common questions

Does procedure 42 remove customs duty?: No. Duty is assessed and paid at import as normal. Only import VAT is not collected at the border.
Can a Czech company importing for its own warehouse use it?: Yes, where the goods move from Slovakia to Czechia and the Czech entity accounts for the acquisition VAT there. The onward movement can be to your own VAT number in the destination state.
What if the goods stay in Slovakia?: Then procedure 42 does not apply and Slovak import VAT is payable at the border in the normal way.

This is general information, not advice for a specific shipment. Rules change; check the official source or ask us about your consignment.