From January 1, 2026, the way non-EU companies import into France under Regime 42 is being reformed. Understand the new “Import Agent” scheme and what you need to do now to avoid disruption to your supply chain.
France's Regime 42 is changing. Is your business ready for 2026?
What's changing with Regime 42?
For years, French Regime 42 has been a crucial VAT simplification procedure for non-EU businesses. It has allowed companies to import goods into France and then move them to another EU country without having to register for VAT in France. This was made possible through a Limited Fiscal Representation (LFR) mechanism, where you could use a representative's VAT number for customs clearance.
To help you quickly grasp the significant shifts in French Regime 42, here’s a breakdown of the current system versus the two new options available from January 1, 2026.
Before 1 Jan 2026: Limited Fiscal Representation
- Legal Basis: Limited Fiscal Representation ("représentation fiscale ponctuelle").
- French VAT Number: Possible to use representative’s VAT number ("borrowed" number).
- Formality Level: Transaction-based, relatively flexible.
- Agent Requirements: Any eligible fiscal representative.
- Scope: Mainly for Regime 42 imports (VAT not paid at import if goods move to another EU country).
- VAT Liability: Mostly on the representative.
- Risk Control: Less formal, limited contractual obligations.
Your two options for continued compliance
From January 1, 2026, the LFR system will be abolished. To continue importing into France under Regime 42, you must choose one of the following two paths, mandated by Article 289 A bis of the French General Tax Code:
Solution 1: Appoint an "Import Agent"
- Legal Basis: Import Agent ("mandataire") – Article 289 A bis of the General Tax Code.
- French VAT Number: Import Agent's VAT Number.
- Formality Level: Written mandate required, ongoing relationship.
- Agent Requirements: Must be established & VAT registered in France for ≥ 1 year, recognized by tax authority.
- Scope: Same scope as before (Regime 42). Cannot be used for DDP sales on the French territory.
- VAT Liability: Import Agent is jointly & severally liable with the client.
- Risk Control: Mostly on the Import Agent (but with joint liability for the client).
Solution 2: Client's own French VAT Registration
- Legal Basis: Appointment of a permanent tax representative, except for some countries and transactions. (Please check official sources for the updated list).
- French VAT Number: Client's own VAT Number.
- Formality Level: Written mandate (tax representative) or management of tax obligations by the client or by an agent (for countries exempt from tax representation).
- Agent Requirements: The Tax representative must be registered by the Tax Authorities.
- Scope: Mandatory for sales on the French Tax territory (DDP sales). Used by extension for Regime 42 (release into free circulation followed by a dispatch to another Member State of the EU).
- VAT Liability: Tax representative is jointly & severally liable with the client. For countries exempt from tax representation, the client is the liable person.
- Risk Control: Mostly on the Tax representative / Mostly on the client for countries exempt from tax representation.
Frequently Asked Questions
Regime 42 is a customs procedure that allows goods to be imported into an EU country (in this case, France) and immediately moved to another EU country without paying import VAT at the border. It is a simplification measure to facilitate intra-community trade.
As of January 1, 2026, companies exporting to France will no longer be able to use the old LFR system for imports under Regime 42. They must either appoint an Import Agent or register for their own French VAT number. Note that the UK is one of the countries that may be exempt from the requirement to appoint a permanent tax representative under certain conditions.
An Import Agent is a new legal status specifically for non-EU companies using Regime 42. A Permanent Tax Representative is a broader requirement for non-EU companies conducting taxable transactions in France who need to register for VAT.
This is the legal basis for the new "Import Agent" scheme, which replaces the former Limited Fiscal Representation mechanism for non-EU businesses importing goods into France.
The changes will take effect on January 1, 2026. It is crucial to start preparing now to ensure your supply chain remains compliant and free from disruption.
