France Ends Regime 42 VAT Relief Simplification
- Arne Mielken
- Oct 12
- 5 min read
🆓From Jan 2026, France ends one-off fiscal representation under Regime 42. Non-EU traders may need to register for VAT and manage compliance directly.
From 1 January 2026, France will abolish the long-standing VAT simplification available under Customs Procedure 42 (Regime 42) for non-EU importers, including businesses established in the United Kingdom, Norway, Switzerland, and other non-EU jurisdictions.
This reform, introduced under the French Finance Act 2025, aims to tighten VAT control and align France with broader EU anti-fraud measures.
For specifically, From 1 January 2026, France will end the “one-off fiscal representation” mechanism under Customs Procedure 42 (Regime 42), fundamentally changing how non-EU companies, including UK businesses, can import goods into France.
Key French VAT Changes for Traders in 2026Non-EU importers will face new compliance obligations when importing through France:
EU businesses may register directly; a fiscal representative is not mandatory but remains an option. |
Are EU-established businesses affected?
EU-established businesses are not affected and can continue trading under normal intra-EU VAT rules. However, they may still require a French VAT registration in certain cases.
Legal Review
Until the end of 2025, the French Finance law (Code général des impôts) allowed:
This translates to:
Here’s an accurate English translation of your text:
"III – By way of derogation from the first paragraph of I, persons not established in the European Union who carry out exclusively transactions for which they are exempt from tax payment under 4 of II of Article 277 A or transactions exempt under 4° of III of Article 291 may appoint a taxable person established in France, accredited by the tax authorities, to fulfil the reporting obligations related to the relevant transaction.
This taxable person is liable for the tax on the transaction for which they must complete the reporting obligations, as well as any related penalties, if the conditions for the exemption from payment or the tax exemption are not met.
A decree defines the conditions under which the reporting obligations provided for in Article 287 are simplified for these transactions"
Download here:
This law allowed non-EU businesses to appoint freight forwarders or customs representatives as a one-off fiscal agent, using the agent’s French VAT number for Regime 42 imports. This allowed companies to avoid registering for VAT in France and simplified compliance for goods imported under DDP terms and immediately sent to other EU member states.
From 1 January 2026, this option disappears. This follows the French Finance Act 2025 (LOI n° 2025-127 du 14 février 2025), which repeals Article 289 A III of the French General Tax Code:
Non-EU companies wishing to continue using Regime 42 must:
Register directly with the French tax authorities to obtain their own VAT number.
File their own French VAT returns, assuming full responsibility for compliance.
Regime 42: What Really Ends – and What RemainsThere has been confusion about Regime 42’s status:
To continue importing via France, non-EU businesses must:
For EU-established businesses, Regime 42 continues under standard intra-EU VAT rules. The reform primarily removes the exemption benefiting non-EU importers. |
Business Impact for Non-EU Traders
The withdrawal of Regime 42 will have significant administrative and financial implications for global exporters, particularly UK, US, and Asian businesses using France as an EU gateway.
While France may lose some competitiveness, importing remains possible with the support of a qualified fiscal representative to manage compliance and cash-flow risks.
Read Our Guide Procedure 42: Guide to Postponing EU Import VAT🔒Navigating Procedure 42: A Guide to Efficient VAT Management for EU Importers |
Why This Matters
The change affects any non-EU business using Regime 42 for EU-wide distribution:
Cash flow impact: VAT will now be accounted for directly, affecting working capital.
Operational changes: Internal processes for VAT filing and compliance will require review.
Preparation time: French VAT registration can take up to 45 days, making early action essential.
Strategic Considerations
While Regime 42 remains available, businesses must reassess:
Whether direct VAT registration suits their operational model.
Whether alternative customs procedures, such as Regime 40, might be more practical.
How EU distribution strategies should adapt under the new rules.
Alternative EU import routes offering VAT deferral
Read our guide Our Guide to French VAT Deferral Alternatives🔒 France will update Regime 42 in 2026. Discover 5 proactive steps, like EU VAT deferral options in the Netherlands and Belgium, to protect your supply chain. |
Stay up to date with Customs Manager's Trade Intelligence
Sign up to the Monday Mandate, the free trade briefing coming out every week. Visit www.customsmanager.org and leave your email address.
Five Steps to Prepare for France’s 2026 VAT Reform
Review current import routes – Identify where Regime 42 is used and assess cash-flow impact.
Compare alternative EU ports – Evaluate Netherlands, Belgium, or Germany for VAT deferral and cost efficiency.
Register for French VAT early – Start registration now to avoid delays.
Reassess Incoterms – Consider moving from DDP to DAP or EXW to reduce VAT exposure.
Work with a trusted fiscal representative – Ensure experienced support in managing compliance and cash-flow.
Early preparation helps avoid customs delays, penalties, and unnecessary administrative costs.
Next Steps
Customs and VAT procedures continue to evolve, and proactive planning is essential. Companies should act early to ensure uninterrupted operations and full compliance with French VAT requirements.
How Customs Manager Ltd Helps Businesses Prepare
Customs Manager Ltd. supports businesses in navigating France’s 2026 VAT changes by providing end-to-end solutions:
French VAT registration and submission of periodic VAT returns.
Customs clearance and coordination with local authorities.
Alternative import routes via the Netherlands or Belgium to improve efficiency and cash flow.
Supply chain restructuring to maintain compliance and minimise disruption.
Cash-flow impact analysis and practical mitigation strategies.
If your business is based outside the EU and currently imports via France, now is the time to act. Schedule a free call with our experts to discuss your options and plan next steps.
Stay informed by signing up for The Monday Mandate, our free weekly trade briefing for customs and trade professionals. It delivers practical insights, regulatory updates, and expert guidance straight to your inbox.
Free Call ⇒ www.customsmanager.org ⇒ Book Expert Call
Free Newsletter ⇒ www.customsmanager.info ⇒ Drop e-mail in box
Take action today to protect liquidity, maintain smooth EU operations, and ensure a seamless transition ahead of France’s 2026 VAT reform.
