The End of an Era for VAT-Free Imports
For years, Regime 42 (Customs Procedure 4200) has been a lifeline for UK and non-EU businesses importing goods into the European Union. It allowed goods to enter through France without paying import VAT, as long as they were immediately shipped to another EU member state where VAT was accounted for under the reverse charge mechanism.
But from 1st January 2026, France will abolish Regime 42 — ending the ability to use this customs simplification route. This marks a major shift in EU VAT compliance for UK traders using France as their main import gateway.
What Is Regime 42?
Under Regime 42:
- Goods are imported into one EU country (like France) without import VAT being charged.
- The VAT is instead declared in the destination country via the buyer’s VAT return.
- The importer must be VAT-registered in the destination country.
- A fiscal representative is often required in the country of import (France).
- Proof of transport — CMR notes, airway bills, and compliant invoices — is essential.
It’s been an incredibly efficient system, saving thousands in upfront VAT and improving cash flow for eCommerce and logistics-heavy businesses.
What’s Changing from 1 January 2026?
From 2026, France will no longer permit imports under Regime 42. All imports into France will become subject to French import VAT, which must then be reclaimed through a French VAT registration.
In other words:
- No more VAT-free imports via France
- No fiscal representation under CPC 42
- Mandatory French VAT registration for any importer using French ports or customs
- VAT reclaim through French VAT returns
- Potential supply chain disruption if your logistics rely on French entry points (e.g. Le Havre, Calais, Marseille)
Impact on UK Businesses
Since Brexit, UK companies are treated as non-EU entities, making VAT and customs procedures more complex. Many have relied on France’s Regime 42 to simplify imports into the EU single market.
With its abolition:
- UK importers will face cash flow strain from upfront French import VAT.
- Businesses will need a French VAT number to reclaim VAT or continue operating compliantly.
- Companies may consider rerouting via other EU countries — but those may soon follow France’s lead.
The best long-term strategy? Register for VAT in France now and adapt your supply chain before 2026.
By registering for a French VAT number and obtaining your own EORI number you can leverage the import VAT reverse-charge mechanism in France instead saving up to 20% on all imports and continue to do business in Europe
Strategic Options for UK and Non-EU Sellers
- Register for French VAT and continue importing via France
This ensures compliance and VAT recovery with minimal disruption. - Reroute through another EU entry point (e.g. Netherlands, Belgium, or Germany)
But beware: these countries are reviewing similar procedures.
Example: How This Affects eCommerce Sellers
Before (Regime 42)
A UK Amazon seller imports stock into France and sends it to customers in Germany.
→ No import VAT due in France.
→ VAT declared and paid in Germany via reverse charge.
After 1 January 2026
The same seller must:
→ Pay import VAT in France, reclaimable through a French VAT return.
→ Register for French VAT to continue operating legally.
→ Maintain proof of export and delivery documentation to support VAT recovery.
Expert Tip: Don’t Wait Until 2026
Many UK businesses underestimate the setup time for VAT registration in France — typically 8–12 weeks, with delays expected as thousands rush to comply before the deadline. Early preparation means:
- No delays in customs clearance
- No VAT reclaim bottlenecks
- Continued access to EU customers
Need Help Registering for French VAT?
At VAT Digital, we specialise in French VAT registration, filings, and fiscal representation for UK and non-EU sellers. We’ll help you:
- Register swiftly and correctly
- Reclaim import VAT
- Stay compliant with changing EU VAT laws
Final Thoughts
The abolition of Regime 42 in France signals a broader tightening of EU customs and VAT frameworks. For UK businesses, the message is clear: adapt early or face disruption.
Whether you sell via Amazon, Shopify, or your own eCommerce platform, a French VAT registration is now a strategic necessity — not an option.
VAT Digital is here to help you make the transition smooth, compliant, and cost-effective.
