Transfer of business activity, residence and others

Capital goods and other equipment belonging to businesses which definitively cease their activity in a third country in order to pursue a similar activity in the EU customs territory shall be admitted free of import duties and VAT.

The following requirements must be met for the tax relief to be granted:

1. the capital goods and other equipment have been used in the company for at least 12 months before the date of cessation of the company's activity in the third country from which it is being transferred
2. are put to the same uses after the transfer
3. are commensurate with the nature and importance of the undertaking under consideration
4. the transfer of the company to the EU customs territory does not result in a merger with or absorption by a company previously established in the EU customs territory, without the commencement of a new activity.

Yes, until the expiry of a period of 12 months from the date of acceptance of the declaration for free circulation, capital goods and other equipment admitted duty-free may not be lent, pledged, hired out or transferred, whether for consideration or free of charge, without prior notification to the customs authorities.

Excluded from the tax relief are:

• Means of transport not having the character of instruments of production or of services
• Foodstuffs of any kind intended for human consumption or animal feed
• Fuels and stocks of raw materials or stocks of finished or semi-finished products
• Livestock held by livestock dealers