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10 Feb 2026

|InSupply Chain

French VAT reforms: The first 30 days

French VAT reforms: The first 30 days

By The Editor

Europa Worldwide Group has strengthened its market position in the wake of new French VAT compliance reforms

Europa Worldwide Group has strengthened its market position in the wake of new French VAT compliance reforms, introduced on 1 January 2026, which have significantly tightened the conditions for UK exporters moving goods DDP into France and onwards into the EU.

This emphasises how increased regulatory complexity can strengthen the competitive position of vertically integrated logistics operators.

From 1 January 2026, French tax authorities advised that UK businesses exporting goods through France under DDP must either hold their own French VAT number or operate under a compliant structure where the importer of record is established in the EU.

This change threatened to undermine British exporters’ confidence in European trade. With reforms increasing operational and reporting burdens associated with DDP movements through France, prompting many exporters to review provider capability, data quality and speed of exception handling.

While some industry observers initially predicted the new requirements would disrupt established DDP operations, Europa has seen the change as an opportunity to further demonstrate its innovative expertise in the UK-EU road freight market. With a unique combination of its in-house customs clearance expertise in the UK & EU, its proprietary customs and road freight operational software and its market-leading hub and trunking infrastructure, Europa has effectively turned regulatory complexity into a competitive advantage.

To support exporters navigating the French VAT reforms, Europa launched two DDP Flow solutions, DDP Flow – 'Importer’s Signature’ and DDP Flow – ‘Own French VAT Number’, designed to maintain DDP continuity through France with in-house control and a seamless customer experience.

Under the ‘Importer’s Signature’ route, the EU consignee signs a fiscal representation agreement, enabling Europa to act as a compliant indirect representative while duties and charges continue to be billed back to the exporter. For exporters choosing to remain importer of record, DDP Flow – ‘Own French VAT Number’ enables Europa to arrange and manage the administration of a French VAT number and associated reporting for shipments free of charge, helping businesses maintain continuity without adding administrative burden.

Andrew Baxter, Chief Executive Officer at Europa Worldwide Group, said: “When cross-border trade becomes more complex, exporters need partners that can respond quickly and keep processes compliant and simple.”
“The French VAT reforms have changed the practical steps required to keep DDP moving through France. DDP Flow was built for exactly these conditions. It keeps goods moving, protects the customer experience, and gives exporters clarity and control when the rules change.”

The new regulatory environment has highlighted the limitations of fragmented service models. Operators dependent on third-party fiscal representation and outsourced customs processes face built-in delays at key stages. VAT reporting is often handled through manual, spreadsheet-based workflows that add time and increase compliance risk, while authorisations and exception handling can take 24 hours or more as updates move between separate systems. Europa’s structure allows for faster internal collaboration with issues identified and resolved within the same business day, often within hours.

Since 1 January, Europa has reported that adoption of both of its DDP Flow services has accelerated, and shipment volumes have increased in direct response to the updated requirements. Over the same timeframe, enquiries linked to France DDP compliance have risen sharply.

Adrian Redmile, Branch and Sales Director at Europa Worldwide Group, said: "Customer feedback has been overwhelmingly focused on one thing: relief. Exporters expected French VAT reforms to cause disruption, but instead, DDP Flow customers are experiencing the same seamless delivery their EU customers have always received. That's exactly what businesses need when regulations change – partners who absorb the complexity rather than pass it back to them."

Europa Worldwide Group was the first logistics provider to deliver a comprehensive DDP solution for road freight following Brexit in 2021. The company's £30 million Dartford transport hub – the largest European groupage facility in the UK – centralises European road freight operations, with 50 per cent of groupage exports currently shipped using DDP incoterms.

The company's in-house FTS team manages more than 500,000 DDP clearances annually, working directly with proprietary IT systems integrated with both HMRC and French Customs infrastructure. This integration enables Europa to implement regime-specific solutions rapidly, utilising Regime 42 for non-France EU deliveries and Regime 40 for French destinations.

Europa maintains a physical presence at all major EU entry and exit points, with dedicated teams in Belgium, the Netherlands, and France working alongside UK and Ireland operations.

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