What is Regime 42 (CPC 4200)? Regime 40 vs Regime 42

Regime 42 (CPC 4200) is the EU import declaration code that releases goods for free circulation in one Member State and exempts that import from VAT, because the goods go on to a VAT-registered business in another Member State. Only the import VAT is relieved: customs duty, where due, is still paid, and the VAT is accounted for in the Member State of destination.

What is Regime 42 (CPC 4200)?

Regime 42 is the procedure code you enter in the import declaration when non-Union goods are released for free circulation in one EU Member State and are then the subject of a VAT-exempt supply to another Member State. The Implementing Regulation (EU) 2015/2447 describes code 42 as the "simultaneous release for free circulation and home use of goods which are the subject of a VAT-exempt supply to another Member State" and, where applicable, an excise-duty suspension. Customs duty is still collected, because release for free circulation entails the collection of any import duty due (Article 201(2)(a) of the Union Customs Code).

In the trade it is often called "Procedure 42", "Regime 42" or "CPC 4200" (the four digits are the 2-digit requested procedure, 42, plus the 2-digit previous procedure, 00). It is a VAT relief at import, not a special customs procedure such as warehousing or inward processing.

How Regime 42 works in the EU

Under Article 143(1)(d) of the VAT Directive 2006/112/EC, Member States must exempt the importation of goods dispatched or transported from a third country into a Member State other than the one in which the dispatch or transport of the goods ends, where the supply of those goods by the importer is exempt under Article 138. That second exemption is the familiar intra-EU supply at 0%.

Article 143(2) adds the conditions. At the time of importation the importer must give the authorities of the Member State of import at least:

1. their VAT identification number issued in the Member State of import (or that of their tax representative liable for the VAT);
2. the VAT identification number of the customer in another Member State (or, for a transfer of own goods, the importer's own VAT number in the destination Member State);
3. the evidence that the goods are intended to be transported or dispatched from the Member State of import to another Member State. Member States may provide that this evidence is supplied only on request.

In practice the VAT numbers are entered in the declaration as additional fiscal references, as the Implementing Regulation (EU) 2015/2447 explains. The VAT is not lost: it becomes due in the Member State of final destination, in the usual case through the buyer's intra-Community acquisition.

The onward supply itself must also meet Article 138(1): the buyer is a taxable person identified for VAT in a Member State other than the one where the transport starts and has given that number to the supplier. Under Article 138(1a) the exemption can be refused if the recapitulative statement (EC Sales List) is missing or wrong, unless the supplier can justify the failure.

Regime 42 in Poland

Poland has transposed Article 143(1)(d) not in the VAT Act itself but in a regulation issued under Article 82(3) of the Act: § 4 of the Minister of Finance Regulation of 20 December 2013 on VAT exemptions (consolidated text, Dz.U. 2025 item 832). It exempts the import of goods whose destination is another Member State and which leave Poland as an intra-Community supply, provided that the importer is registered as an EU VAT payer (VAT UE) and:

• at the time of import gives their valid Polish VAT-EU number, the valid VAT number of the buyer in the destination Member State (or their own number there, for a transfer of own goods) and evidence that the goods are intended to be transported to another Member State;
• within 4 months after the month in which the import VAT obligation arose, presents to the customs authority proof that the supply was reported in the recapitulative statement (or a tax office certificate where the supply cannot be identified in it);
• if this deadline was missed in the previous 12 months, lodges a security equal to the VAT not paid.

Two further points from the Polish VAT Act (consolidated text, Dz.U. 2026 item 1263) are worth knowing:

• The onward supply is zero-rated under Article 42. The supplier needs a buyer with a valid EU VAT number that the buyer has given to them, evidence that the goods left Poland and reached the buyer in another Member State (transport documents, packing specification, and further documents listed in Article 42(3)-(11)), and registration as an EU VAT payer when filing the return. A correct recapitulative statement is also required.
• Tax representative for import-only traders. Article 18d provides for a tax representative who settles the VAT in their own name where a taxable person only imports goods into Poland that are destined for another Member State, the importer dispatches them as an intra-Community supply, and the taxable person is not registered as an active VAT payer. In that situation Article 18b(3) lets a customs agency act as the tax representative without the usual requirement to be qualified in tax advice or bookkeeping services; the other conditions in Article 18b(1) still apply.

If the goods stay in Poland, Regime 42 does not apply and the normal import VAT rules do.

Regime 40 vs Regime 42: the difference

The Regime 40 description in the Implementing Regulation (EU) 2015/2447 lists, as examples, goods from Japan "with payment of customs duty, VAT and when applicable excise duties". Choosing 42 instead of 40 does not remove customs duty, only the import VAT.

Regime 40 explained: the standard release for free circulation

Regime 40 (CPC 4000) is the "ordinary" import declaration: goods are released for free circulation and for home use in the Member State of import, and the import VAT is payable there, together with any customs duty and excise. Use it when the goods stay in the country where you clear them, or when the conditions for Regime 42 are not met (for example, the buyer has no EU VAT number). The only real difference in VAT terms is where and when the VAT is accounted for; duty works the same under both.

When is Regime 42 used for goods from the UK?

Since Brexit, goods from Great Britain are non-Union goods when they arrive in the EU, so Regime 42 applies to the EU import declaration, not to the UK export. If a UK seller ships to a business buyer in Poland or another EU country, there are three typical set-ups:

• Clearance in another Member State, goods continue to Poland (for example entry through a port in the Netherlands, Belgium or France). The declaration with code 4200 is lodged in the Member State of entry, under its rules (for instance on the importer's VAT number or tax representative and on when the evidence must be given, Article 143(2) of the VAT Directive). The Polish buyer, holding a valid EU VAT number, accounts for the VAT in Poland.
• Clearance in Poland, goods continue to a third Member State (for example Germany). Poland is the Member State of import, so § 4 of the Polish regulation described above applies: the importer gives the VAT numbers and evidence of onward transport and has 4 months after the month of import to show that the supply was reported in the recapitulative statement.
• Clearance in Poland, goods stay in Poland. Regime 42 does not apply. Use Regime 40 and pay import VAT in Poland (see how to settle VAT on import).

In every set-up duty, if due, is paid on release for free circulation, and the VAT test is the same: valid VAT numbers and evidence that the goods really left the Member State of import. As a rule, Regime 42 is not for goods going to a private individual or to a buyer without an EU VAT number.

Is there a "Regime 42" in the UK?

In HMRC's Customs Declaration Service (CDS), requested procedure code 42 is listed for goods moving to Northern Ireland, either from Great Britain or from the rest of the world (HMRC: Requested Procedure 42). The UK VAT relief for onward supply to the EU (Onward Supply Relief) likewise applies to goods imported into Northern Ireland. HMRC's guidance does not list it for imports into England, Scotland or Wales. So code 42 never appears on a UK export declaration to the EU; it appears on the import declaration in the EU Member State.

How Regime 42 works step by step

1. Confirm that the goods really go to another Member State and to whom: the buyer must hold a valid EU VAT number issued there.
2. Check the VAT numbers of the importer and the buyer in VIES before you lodge the declaration.
3. Settle the tariff code and origin, because duty still applies (see how to find the commodity code).
4. Lodge the declaration with code 4200, giving the VAT numbers as additional fiscal references and the evidence that the authority of the Member State of import requires.
5. Arrange transport to the destination Member State and keep transport documents showing delivery.
6. Report the supply in the recapitulative statement and, if you import in Poland, give the customs authority the confirmation within 4 months after the month in which the import VAT obligation arose.

Documents and data you need

• the importer's EU VAT number (in Poland, a valid Polish VAT-EU number), or the details of a tax representative and a copy of the agreement (§ 4(7) of the regulation);
• the buyer's VAT number in the destination Member State;
• commercial invoice, transport document (for example a CMR) and a packing specification;
• proof of delivery to the buyer in the other Member State;
• confirmation that the supply was reported in the recapitulative statement;
• the declarant's EORI number (see how to get an EORI number).

Example

A Polish company with an EU VAT number buys goods from a UK supplier. The goods are to go to a German business with a valid German VAT number. They are declared for release for free circulation in Poland under code 4200, with the Polish company's number, the German buyer's number and evidence that the load will go to Germany. The company pays duty if due but no import VAT. After delivery it reports the supply in the recapitulative statement and, within 4 months after the month in which the import VAT obligation arose, gives the customs authority the confirmation. The German buyer accounts for the VAT in Germany. (An illustration only: in a real case the documents and the rules of the Member State of import decide.)

Common mistakes and risks

• Missing or wrong VAT numbers. Article 143(2) makes the exemption conditional on the importer's and buyer's numbers being given at the time of import. An invalid number on the declaration puts the relief at risk.
• No proof of onward transport. The evidence must show the goods are intended to go to another Member State, and later the supplier needs proof of arrival to keep the 0% rate on the supply (in Poland, Article 42(1)(2) and (3)).
• Goods end up staying in the country of import. The relief covers goods that go to another Member State only.
• Recapitulative statement errors. A missing or incorrect EC Sales List can cost the 0% rate (Article 138(1a)).
• Assuming 42 removes duty. It does not; check the tariff code and origin before you declare.
• Using the wrong legal basis. The VAT exemption comes from the VAT Directive (Article 143), not from the Union Customs Code.

Related guides

• How importing from the UK to Poland works
• How to settle VAT on import
• What is customs clearance?

Frequently asked questions