Tax representation

Procedure 42

Procedure 42 is a procedure of import clearance of goods when a process of release of goods is required with the implementation of value added tax exemption since the goods are aimed at a tax payer in another member country of the EU or a tax payer transfers them for his own needs.

It’s worth it, give it a try!

Advantages of procedure 42

Cut the customs procedures time and complete customs formalities already at the entrance of goods into the customs area of the EU i.e. the Republic of Croatia if the delivery is aimed at another member country i.e. if it leaves the territory of the Republic of Croatia.

We’ll prepare for you a simple registration; arrange customs and tax representation and reporting.

Most EU importers at the border crossing when entering the Republic of Croatia have gradually switched procedure 42   over a T1 transit procedure.  EU legislation offers deferral of VAT payment which practically means that a delivery, when entering the EU, is released under the customs declaration with VAT exemption against the customs declaration and the importer pays VAT in his own country thus increasing solvency by enabling a longer due date for tax liability.

A tax payer registers and settles incurred tax liabilities through tax reports in his own country. Customs fees are paid upon customs declaration. Experience has shown that   with procedure 42 different contracts on free trade along with certificates such as  EUR-1, FORM decrease or fully eliminate customs.

More than often the amount of the debt against the customs declaration – procedure 42 is 0 HRK so that no liquid assets are required to release the goods.  Solvency increase achieved through a longer due date for tax liability is certainly a significant advantage of this procedure.

A cleared delivery can be forwarded directly to further buyers whereby transport costs are reduced, there are no additional customs procedures related to the dispatch with a T1 transit procedure all of which makes the time for customs formalities significantly shorter.