France is a popular gateway to the EU for UK exporters but from 1 January 2026 its Regime 42 is ending – changing the trading landscape for UK-based exporters who use France as an entry point for their intra-EU goods.
Regime 42 (Customs Procedure 42) offered a useful mechanism for non-EU businesses. It allowed goods into the EU without sellers having to pay import VAT at the point of entry, as long as the goods were destined for another EU member state, and the buyer paid the VAT in that destination country.
For businesses trading on delivered duty paid (DDP) Incoterms, this saved time and eased cash flow.
How did Regime 42 work?
This EU customs mechanism made it easier for UK and other non-EU companies to move goods into the EU and distribute them to other members states without paying import VAT twice. For example:
- You could import goods into one EU country (such as France) and then send them on to another EU country (eg, Germany).
- Under Regime 42, you didn’t have to pay import VAT in France because the VAT was due in the final destination country (Germany).
- This saved time, paperwork, and helped your cash flow, especially for UK companies selling goods DDP to EU buyers.
What’s changed?
From 1 January 2026, France is ending this option for non-EU companies. UK businesses will no longer be able to use a French fiscal representative’s VAT number to import under Regime 42.
To keep using France as an entry point, you’ll need your own French VAT registration – or you’ll have to consider adjusting your trade setup.
What this means for UK exporters?
There may be significant impacts for those affected so you’ll need to act quickly to remain compliant.
- Expect more admin – you will need to register for a French VAT number and prepare monthly VAT returns (and EC Sales Lists and Intrastat if applicable).
- Cash-flow impacts – you may have to pay import VAT upfront in France and reclaim it later.
- Consider rethinking your EU logistics routes – for example, importing via Belgium or the Netherlands which may have a more favourable customs regime.
- Contract changes – if you sell DDP, you might switch your Incoterms to delivered at place (DAP), so that the buyer handles import taxes instead.
From January 2026, the changes to Regime 42 will require non-EU companies to review and adjust how they manage imports and VAT compliance. International Forwarding Ltd (IFL) offers solutions to help your business remain compliant and continue trading with Europe. Please get in touch with our team for further assistance.
In short
Regime 42 used to be a handy VAT shortcut for UK exporters selling into the EU. When it ends, moving goods through France will cost more time and admin, unless you register for French VAT or change your trade setup.
Review your supply chain now so you’re ready before the 2026 deadline.
