As of the 1st January 2026 Regime 42 is changing. Currently it is possible to offer a non-EU company e.g. a GB exporter, an option to ship on DDP terms using Regime 42 without an EU VAT & EORI, this is known as fiscal representation. The agent in France uses their VAT & EORI to clear with the GB shipper then being charged the VAT and Duty back. Unfortunately doing it that way has now been linked to major fraud cases resulting in several fines being issued for non-compliant use, this has lead to changes being implemented.
The good news is that if you are currently using KMB to ship via Regime 42 then the only thing that will need to be changed change is the incoterms. The way we do Regime 42 has always been that the GB exporter has an EU VAT & EORI number which is registered for Intra-EU use and using DDP terms, VAT is then accounted for on your EU Intrastat report and Duty charged back to you by us. This is still allowed under the new changes, with the exception being that the incoterms now need to be shown as DAP instead of DDP. DDP is now only allowed with a French VAT & EORI.
If you currently use Regime 42 for DDP shipments in any other way, moving forward the only options will be as follows:
Option 1 – If you only have a non-EU VAT & EORI, change from DDP to DAP.
This would mean that the EU buyer becomes the importer of records and would be responsible for any VAT / Duty. If they are VAT registered in France and delivering into France then it would be classed as Regime 40, if they are based elsewhere in the EU then they need to ensure their EU VAT & EORI is Intra-EU registered allowing Regime 42 to be used in France.
Option 2 – As a GB exporter you obtain your own EU VAT & EORI.
If you choose to obtain a French VAT & EORI then Regime 40 can be used for shipping delivering into France using DDP incoterms.
Alternatively you can obtain an EU VAT & EORI from a country that is not France, ensure this is set up as intra EU registration and continue shipping using Regime 42 though using DAP terms.
We understand obtaining an EU VAT & EORI can be a timely process, so we would advise you start the application ASAP to allow adequate time for an application to be processed prior to the January 1st deadline.
If you require advise or clarification then the team at KMB is always on hand to provide support.