Do you plan to do business in Europe? With a company in Slovenia, you can import goods and sell them in the entire EU. If you will import goods from third countries and plan to sell them in the EU, it is possible to do it through a transit of goods. This means that you import the goods from third countries to Slovenia and immediately ship them off to another EU member state. Today, we will explain this process, which is called the customs procedure 42. It requires a different kind of calculation of duties.
Transit of goods and customs procedure 42 – how do you calculate VAT?
When importing goods, a Slovenian VAT payer, usually with the help of a freight forwarder, declares the customs procedure 42. This enables him to be exempt from VAT for the transit of goods. Also, you must provide information to the customs authority that you will deliver the goods to another EU Member State. You must also meet some conditions. These are: that the importer in Slovenia and the recipient of the goods in another EU country must have a valid VAT ID number. Notwithstanding the exemption from VAT, the customs duties shall be levied and paid on importation in accordance with the nomenclature and rates.
Transit of goods – how to report VAT for customs procedure 42?
A Slovenian VAT payer must, of course, issue an invoice for the sale of imported goods to his buyer, a taxable person in another EU country. For the customs procedure 42, he must obtain and keep proof of delivery of the goods to another Member State. At the same time, it must report on the supply on the VAT return and the RP report (supply of goods and services to another EU Member State). Pursuant to Article 46 of ZDDV-1, the supply of goods to another EU Member State is exempt from VAT if the recipient, the taxable person, is identified for VAT purposes.
Our legal advisors and tax consultants can help you to understand the best possible way for the transit of goods for your business.
Evidence for the customs procedure for transit of goods
The customs procedure in question prescribes the supporting documents. Also it prescribes documents proving that the imported goods will be transported or dispatched from Slovenia to another EU State. It is usually a transport document according to the type of transport. These can be: CMR, the bill of lading, air freight, the carrier’s invoice, the insurance policy regarding the dispatch of goods, etc. This will enable the transit of goods.
Below is a visual example of the situation:
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