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DDP Regime 42: What UK exporters need to know in 2026

Written by Holly Bishop | Oct 13, 2025 11:36:13 AM

Understanding the changes to DDP Regime 42 and how UK exporters can stay compliant under the EU’s 2026 customs reforms

Many UK exporters still rely on Regime 42 for smooth DDP (Delivered Duty Paid) shipments into the EU. With major customs reforms coming in 2026, confusion remains over what will happen next. Will DDP still be viable? Can UK businesses continue using Regime 42 to reclaim import VAT?

This blog breaks down what’s changing, what’s staying, and how exporters can prepare ahead of the full withdrawal.

For a full breakdown of the policy and its wider impact, read our comprehensive guide to the end of Regime 42

 

What is DDP Regime 42?

A quick refresher:

  • DDP (Delivered duty paid) means the seller is responsible for all customs duties, VAT and delivery to the buyer's door.

  • DDP Regime 42 has allowed VAT-registered EU importers to avoid paying import VAT upfront when goods move through one EU member state into another.

Many UK exporters have used this combination to simplify EU trade post-Brexit, using intermediaries or fiscal representatives to manage VAT.

What’s changing in 2026?

The EU is modernising its customs systems to create a single, digital customs environment. As part of this reform, DDP Regime 42 will be fully withdrawn by 2026.

Here’s what that means for UK exporters:

  • Import VAT will be due at the point of entry.
    Businesses will no longer be able to defer or exempt import VAT when moving goods through one EU country into another.
  • Fiscal representation will be required.
    To comply with VAT rules, UK exporters may need to appoint a fiscal representative or register for VAT in specific EU countries.
  • Data transparency will increase.
    Customs authorities will require digital records tracing goods from the first point of entry to their final destination.
  • DDP may become less cost-effective.
    As compliance and VAT obligations increase, DDP could lead to higher costs and more administration for sellers.

How this affects UK exporters using DDP

When Regime 42 is removed, DDP shipments will be affected in several ways:

  • Higher delivery and VAT management costs.

  • New customs declarations will likely require precise digital data alignment with EU systems.

  • Using DDP could increase VAT exposure and administrative burden, particularly for smaller exporters.

Exporters who currently rely on DDP under Regime 42 will need to reassess how they deliver goods into the EU and who acts as the importer of record.

What are your options?

We understand that the end of DDP Regime 42 could create challenges for UK exporters — but there are practical, compliant solutions available. At Firstpoint Logistics, we work closely with our network of customs and VAT specialists to keep your EU supply chains moving smoothly.

1. Switch to DAP with clearance support

For some exporters, switching from DDP to DAP (Delivered at Place) may be the most practical long-term option. Under DAP terms, the buyer takes responsibility for VAT and duties, reducing your exposure to complex EU tax requirements.

2. French VAT registration and compliance through DDP Regime 40 

If your shipments primarily enter through France, we can support full VAT registration and compliance through our trusted partners, covering VAT registration, returns, and ongoing compliance management. This means you can maintain DDP terms into France confidently, with the assurance that your operations remain smooth, transparent, and fully compliant.

3. Clearance through the Netherlands

Alternatively, we can reroute shipments through the Netherlands, where fiscal representation for non-EU businesses remains available. This approach allows you to continue supplying EU customers on DDP terms with minimal disruption. However, it’s important to note that this option may involve additional costs and administrative steps, such as increased documentation and local compliance requirements.

 

 

What to do now?

To stay compliant and competitive:

  1. Audit current DDP routes and identify which depend on DDP Regime 42.

  2. Engage with customs partners to explore compliant delivery terms post-2026.

  3. Review your VAT setup — fiscal representation may now be required in key EU countries.

  4. Plan early to avoid shipment delays or unexpected duty bills.

How Firstpoint Logistics can help

At Firstpoint, we understand how crucial efficient customs management is for exporters. Our experts are already working with UK businesses to prepare for the post-Regime 42 environment.

We offer:

We simplify compliance, so you can focus on your exports — not your paperwork.
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