Is your business ready for Brexit? The UK left the European Union on 31 January 2020 and entered a transition period which is due to end on 31 December 2020.
Are you a VAT registered Import and Export business? How to be ready for a no deal Brexit.
Businesses that are VAT registered and Import or Export with the EU, need to prepare for a no deal Brexit. (Not including Northern Ireland or Ireland).
Making customs declarations for UK-EU trade in a no deal scenario will be the responsibility of the UK business. Using a customs agent is the easiest way to make customs declarations. To ensure businesses are ready for this scenario they must register now for an EORI number (Economic Operator Registration and Identification number). A customs agent can then be appointed.
If no agent is appointed, a member of staff should be trained to make customs declarations, and there must be a correct software to link with HMRC.
You should register with the National Export System if you export from the UK to the EU.
HMRC is introducing TSP (Transitional Simplified Procedures) for the initial period of a no deal to make importing easier.
You can sign up for TSP online. Once registered you will not have to make a full customs declaration at the border and can postpone paying import duty. You need an EORI number to sign up for TSP.
VAT on Imports
Accounting for VAT on imports will change.
Import VAT will be paid on the next VAT return rather than on arrival at the UK border. On the same VAT return import VAT can be declared and recovered. Your VAT number will need to be on the customs declaration.
IT VAT system changes.
The following systems will be no longer in use:
EU VAT Refund Electronic System, EU’s VAT number validation service (VIES), UK VAT Mini One Stop Shop (MOSS). For more information visit www.gov.uk/hmrc/eu-vat-it-rules.