What you should know about Rule 42
It is vital that you are aware of these conditions 

Rule 42, sometimes referred to as ‘Regime 42’ or ‘Customs Procedure 42’ is a legal mechanism in which a EU importer can use it to obtain a VAT exemption for their goods into the first EU country of arrival.

At Aerona we believe that it is crucially important that you are aware though that Rule 42 is only effective if the goods are to be supplied to another EU Member State where the goods have NOT been subject to any previous procedure.

To qualify for Rule 42 VAT exemption you must observe the following rules and regulations.

1.    Rule 42 consists of two parts.

The import by a non-EU State to the first EU Member State is VAT exempt.

The subsequent supply of the goods from the first Member State to the destination EU State is 0% VAT rate.

This means that the import of goods to the first EU Member State is VAT neutral.

2.    Rule 42 Rules and Regulations

If you are the importer and you wish to claim a VAT exemption under Rule 42 as the first country of import the following rules must be applicable:

a)    The VAT number issued in the first Member State of arrival, or the VAT Identification Number of their tax representative or fiscal agent, is liable for payment of the VAT issued in the first Member State.

b)    The VAT Identification Number of the customer or consignee (that is the buyer in the EU Member State destination country.)

c)    You must provide valid evidence that the imported goods are intended to be transported or dispatched from the first Member State to the final Member Sate.

3.    How you benefit from Rule 42

Under Rule 42 VAT is postponed as per PVA and so is NOT PAID at the time of importation into the EU. Instead it is only payable by the importer of the EU Member State Destination under national VAT rules. 

This procedure also helps to improve or protect the importer’s cash flow.

It is important that you remember though …

·         Goods must be intended for onward supply to another EU Member State at the time this procedure is used and requested.

·         Goods must be onward supplied within 72 hours of the goods being released into this procedure.

·         The goods must be in an unaltered state from the time of release to this procedure.

You MUST provide evidence of onward shipping

It is important to note that the importer must be UK VAT Registered, or have appointed a tax representative in the UK to act on their behalf.

It is equally important that the tax representative must meet all the conditions of a tax representative as defined by the Import Clearing Standard Customs Regime.

If you require any further clarification of the terms and conditions of Rule 42 then please do not hesitate to consult us at Aerona.  We will do all we can to assist in your export operations. You can contact Aerona by telephoning 0161 652 3443. You could also email us at: This email address is being protected from spambots. You need JavaScript enabled to view it. or you can send us a message using the form that can be found on our Contact page.  Please remember, at Aerona we are here to help you.