France Ends Regime 42 in 2026: What Non-EU Businesses Need to Know

Customs Procedure 42 (Importation followed by an Intra-Community Supply – ICS) is a vital mechanism that grants Import VAT (VAT-I) exemption in France when goods are imported but immediately shipped on to another EU Member State. Following the 2022 reform on mandatory Postponed Accounting for Import VAT (PAI), the French regulatory landscape continues to evolve.

A key change is coming in 2026, requiring significant adjustments for operators established outside the European Union (EU).

Fiscal Alignment: The End of One-Off Fiscal Representation

The main upcoming change is the abolition of a special tax relief regime: One-Off Fiscal Representation (OFR), also known as “Représentation Fiscale Ponctuelle (RFP)” in French, for imports using Procedure 42.

Until December 31, 2025, this allowance permits non-EU companies to use Procedure 42 by appointing a fiscal representative for specific, isolated transactions, avoiding the need to fully register for VAT in France. This simplified approach was largely beneficial for managing cash flow.

To ensure greater fiscal harmonization and security across tax flows, this special provision will permanently cease on January 1, 2026.

New Mandatory Requirements for Non-EU Operators

To continue utilizing Procedure 42 in France after the deadline, businesses established in third countries must comply with standard tax obligations:

• Full VAT Registration: Obtaining a French VAT number will become mandatory for the non-EU operator.
• Appointment of an Accredited Fiscal Representative (FR): The company must appoint an Accredited Fiscal Representative in France. This representative will be responsible for managing all the non-EU operator’s filing obligations, including verifying and submitting VAT returns (CA3) and Intrastat returns (EMEBI).

These stricter requirements are designed to ensure enhanced traceability and tax compliance for all international goods movements.

Stability for European Operators and PAI Continuity EU

For businesses already established within the EU, the core framework set up in 2022 remains stable:

• PAI Maintained: The generalized and mandatory use of Postponed Accounting for Import VAT (PAI) under Procedure 40 continues. VAT-registered operators in France still benefit from cash-flow neutrality, as they report and deduct the VAT-I simultaneously on their monthly VAT return (CA3).
• Fiscal Neutrality: This neutrality made Procedure 40 equally advantageous as Procedure 42 for standard entry and consumption flows in France, simplifying processes for many intra-EU operators.
• Procedure 42 Remains Applicable: Customs Procedure 42 itself is not being eliminated; it remains a valid customs tool for structuring specific logistical and triangular flows.

The 2026 regulatory shift is primarily focused on requiring a permanent fiscal establishment (or full representation) for non-EU operators processing import-export transactions through France.

Customs Support France: Your Partner for a Smooth Transition

Adapting to these new regulatory requirements is essential and demands timely preparation. At Customs Support France, we partner with businesses to ensure these changes are managed efficiently and without interrupting your operations.

Our expertise turns these administrative challenges into seamless, compliant processes:

• Tax and Customs Compliance: We support the entire VAT registration process for your non-EU entity. We can assist you directly with the French Tax Administration, guiding you through the necessary procedures until you successfully obtain your own French VAT number. Furthermore, we support the accurate management and filing of all your tax returns (CA3) and trade declarations (EMEBI).
• Flow Optimization: We analyze your supply chain to advise on the most suitable strategy: maintaining Procedure 42 under the new conditions or opting for Procedure 40 (PAI) to simplify your operations.
• Customs Clearance Security: Our teams handle the customs clearance of your goods under Procedure Codes 42 or 40, guaranteeing the correct application of VAT exemption and PAI rules.

The 2026 deadline is a regulatory milestone. By choosing Customs Support France, you gain a reliable and expert partner to navigate this new regulatory landscape successfully.