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Exemption from value added tax on imports of goods to forwarded to another EU country

Imports are VAT exempt when you import goods , clear them through customs, and subsequently forward them to a consignee in a different EU country. In these instances you are not required to declare VAT. Instead, the recipient declaraes VAT in the other EU country. When the exemption is applied, procedure codes beginning with 42 or 63 are used.

The exemption covers what is referred to in the Value Added Tax Act as the supply of goods for consideration. The transfer of goods to another EU country is also covered if the transfer can be equated with the supply of goods for consideration. An example of the supply of goods for consideration is when goods change ownership through sale. Transfers refer to a product moving from one EU country to another without changing ownership.

For such imports, procedure codes beginning with 42 or 63 are used.

The following requirements must be met to apply the exemption:

  • The declarant must be registered for VAT in Sweden. If an indirect agent is designated as the declarant in the customs declaration, the principal should be registered for VAT in Sweden.
  • The consignee must be registered for VAT in the other EU country.
  • The declarant must be able to prove that the product will be forwarded to a different EU country. To prove the nature of the shipment you may, for example, use a sale agreement with a customer with a shipping address in a different EU country, an agreement with a shipping company which states that the goods are to be shipped to a different EU country or a shipping bill shown by the driver.

If your company, as a declarant or client, does not have a Swedish VAT number, the exemption and procedure 42/63 cannot be applied. Then there are two other alternatives:

  • Paying VAT for goods presented for free circulation (procedure codes beginning with 40).
  • Moving the goods to the receiving EU country.

Privat individuals

In certain cases, private individuals may also declare VAT-exempt imports under procedure 42 or 63. This applies only to goods in HS chapters 86–89. See example 7 below.

IOSS

If the import is carried out under the Importer One-Stop Shop, the IOSS registration number must be indicated together with the code FR5.

VAT in case of IOSS registration

Examples of how to apply and declare the exemption

The examples below show how to declare when the exemption and procedure codes 42 or 63 are applied :

 

This case concerns the supply of goods for consideration. A Swedish company is the seller, importer and declarant.

A Swedish company has purchased goods from a Norwegian company. Prior to customs clearance, the Swedish company has sold the goods to a company with a French VAT number.

After customs clearance in Sweden, the goods will be transported onwards to France.

  • Data element 13 09 000 000 – Buyer:
    Enter the name and address of the French company. If the French company has an EORI number, you only need to enter that.
  • Data element 13 04 000 000 – Importer:
    Fill in the EORI number of the Swedish company.
  • Data element 13 05 000 000 – Declarant:
    Fill in the EORI number of the Swedish company.
  • Data element 13 16 000 000 – Additional fiscal information:
    Enter the Swedish company’s VAT number using the code FR1, and the French company’s VAT number in France using the code FR2.

This case concerns the supply of goods for consideration. A Swedish company is the seller, importer and declarant.

A Swedish company has undeclared goods in a customs warehouse. The company is selling the goods to a company that is registered for VAT in Finland. The Swedish company clears the goods and ships them onwards to the company in Finland.

  • Data element 13 09 000 000 – Buyer:
    Enter the name and address of the Finnish company. If the Finnish company has an EORI number, you only need to enter that.
  • Data element 13 05 000 000 – Declarant:
    Fill in the EORI number of the Swedish company.
  • Data element 13 16 000 000 – Additional fiscal information:
    Enter the Swedish company’s VAT number using the code FR1, and the Finnish company’s VAT number in Finland using the code FR2.
  • Data element 13 04 000 000 – Importer:
    Fill in the EORI number of the Swedish company.
  • Data element 13 05 000 000 – Declarant:
    Fill in the EORI number of the Swedish company.
  • Dataelement 13 16 000 000 – Additional fiscal information:
    Enter the Swedish company’s VAT number using the code FR1, and the Finnish company’s VAT number in Finland using the code FR2.

This case concerns a transfer. A Swedish company is the buyer, importer and declarant.

A Swedish company has purchased goods from a Chinese company. The Swedish company has a warehouse in Finland and is registered as a foreign company in Finland. Immediately after customs clearance in Sweden, the goods are transported to the warehouse in Finland.

  • Data element 13 04 000 000 – Importer:
    Fill in the EORI number of the Swedish company.
  • Data element 13 05 000 000 – Declarant:
    Fill in the EORI number of the Swedish company.
  • Data element 13 16 000 000 – Additional fiscal information:
    Enter the Swedish company’s VAT number in Sweden using the code FR1, and the Swedish company’s VAT number in Finland using the code FR2.

This is a case of circulation and a Norwegian seller is the declarant.

A Norwegian company, registered for VAT in Sweden, has sold goods to a company registered for VAT in France prior to customs clearance in Sweden. After the customs clearance, the goods will be transported onwards to France.

  • Data element 13 09 000 000 – Buyer:
    Enter the name and address of the French company. If the French company has an EORI number, you only need to enter that.
  • Data element 13 04 000 000 – Importer:
    Fill in the EORI number of the Norwegian company.
  • Data element 13 05 000 000 – Declarant:
    Fill in the EORI number of the Norwegian company.
  • Data element 13 16 000 000 – Additional fiscal information:
    Enter the Norwegian company’s VAT number in Sweden using the code FR1, and the French company’s VAT number in France using the code FR2 (in the case of circulation).

This case concerns a transfer. A French company is the buyer, importer and declarant.

A French company has purchased goods from a Norwegian company. The French company is registered for VAT in France and in Sweden,. After customs clearance in Sweden, the goods will be transported onwards to France. The goods will be used as part of the company’s operations in France, i.e. the French company has not re-sold the goods prior to customs clearance.

  • Data element 13 04 000 000 – Importer:
    Fill in the EORI number of the French company.
  • Data element 13 05 000 000 – Declarant:
    Fill in the EORI number of the French company.
  • Data element 13 16 000 000 – Addition fiscal information:
    Enter the French company’s VAT number in Sweden using the code FR1, and the French company’s VAT number in France using the code FR2.

This is a case of circulation and the French purchaser is the declarant.

A French company has purchased goods from a Norwegian company. The French company is registered for VAT in Sweden,. After the customs clearance in Sweden, the goods will be transported to Hungary, as they have been re-sold to a Hungarian company.

  • Data element 13 09 000 000 – Buyer:
    Enter the name and address of the Hungarian company. If the Hungarian company has an EORI number, you only need to enter that.
  • Data element 13 04 000 000 – Importer:
    Enter the French company's EORI number.
  • Data element 13 05 000 000 – Declarant:
    Enter the French company's EORI number.
  • Data element 13 16 000 000 – Additional fiscal information:
    Enter the French company’s VAT number in Sweden using the code FR1, and the Hungarian company’s VAT number in Hungary using the code FR2.

A private individual imports a new vehicle under Chapters 86–89 of TARIC from Norway. Prior to being imported, the vehicle is sold on to another private individual in Denmark.

  • Data element 13 09 000 000 – Buyer:
    Enter the name and address of Danish consignee.
  • Data element 13 04 000 000 – Importer:
    Enter the Swedish importer's name, address and social security number.
  • Data element 13 05 000 000 – Declarant:
    Enter the Swedish declarant's name, address and social security number.
  • Data element 12 03 002 000 – Supporting documents – Type:
    • Enter document code 3MEJ followed by the Swedish declarant's social security number in data element 12 05 001 000 – Reference number.
    • Enter document code 3MEU followed by the Danish buyer's social security number in data element 12 05 001 000 – Reference number.

A Swedish company has purchased goods from a Norwegian company. Prior to customs clearance, the Swedish company has sold the goods to a company with a French VAT number. After customs clearance in Sweden, the goods should be processed before they are transported onwards to France.

Even in these cases, you must be able to prove that the goods will be delivered to another EU country after they have been processed. There must also be an identity between the imported goods and the goods resulting from the processing, which are then transported on to the other EU country.

See section 7 in the brochure:
Mervärdesskatt vid import pdf, 1.3 MB.. (VAT on imports)

  • Data element 13 09 000 000 – Buyer:
    Enter the name and address of the French company. If the French company has an EORI number, you only need to enter that.
  • Data element 13 04 000 000 – Importer:
    Fill in the EORI number of the Swedish company.
  • Data element 13 05 000 000 – Declarant:
    Fill in the EORI number of the Swedish company.
  • Data element 12 03 00 000 – Supporting documents:
    • Enter the code in data element 12 12 002 000 – Type
    • Enter the work/processing to be carried out, when it is expected to be completed, where it will be carried out and by which company in data element 12 03 001 000 – Reference number.
  • Data element 13 16 000 000 – Additional fiscal information:
    Enter the Swedish company’s VAT number using the code FR1, and the French company’s VAT number in France using the code FR2.