From 1 January 2026, France will abolish Regime 42 (Customs Procedure Code 4200) for non-EU companies.

While official details have yet to emerge, this change will affect UK companies using France, particularly Calais, as their customs clearance entry point into the EU.

Since Brexit, some UK companies have been routing goods into the EU through France without paying import VAT upfront. This will come to an end.  The French government plans to abolish limited fiscal representation for non-EU businesses which means that non-EU companies including the UK will have to register and pay French VAT at the border when clearing goods through France.

For UK and other non-EU companies the key changes are:

• French VAT registrationwill become mandatory for non-EU businesses including UK companies clearing goods through France.
• VAT returnswill need to be filed regularly, declaring import VAT and making VAT payments which can no longer be deferred
• Full fiscal representationis expected to be required for non-EU exporters
• Goods imported via France can no longer bypass or defer import VAT via onward shipping (for example to other EU countries)

Under the new rules, non-EU companies shipping via France will be expected to register for French VAT to clear goods through France (which is likely to be complicated) or appoint a French fiscal representative (at additional cost).

If you are using France as your main gateway into the EU, UKFT recommends you to consider other routes into the EU including the Netherlands.

Regime 42 remains available under the normal intra-EU VAT rules but there may be cases where the new French rules could change how even EU companies account for and pay VAT in France.

If members would like to discuss this, please email paul.alger@ukft.org

Not yet a member? Click here for more details on UKFT membership.