If your business imports or exports goods either as sales or in your supply chain, there are a number of things you need to do and be aware of with the end of the Brexit transition period ending on 31 December 2020.
FROM 01 JANUARY 2021
the EU Customs Union and VAT regime will no longer apply to the UK. As a result, importers of goods from the EU into the UK (excluding Northern Ireland) will need to deal with new customs tariffs, declarations and import VAT rules. A different VAT and customs regime will apply to Northern Ireland.
Custom duties in the UK are a tax levied on imports. Currently there are no tariffs on trade within the EU customs union, but unless the UK reaches a free trade deal with the EU, they will apply to UK-EU trade.
KEY STEPS ALL IMPORTERS AND EXPORTERS SHOULD TAKE NOW
Businesses will need to plan how they wish to pay UK import VAT when new customs and VAT regime takes effect. There are a number of options to consider:
UK INTRASTAT DECLARATIONS
Currently VAT registered businesses in the UK are asked to complete Intrastat declarations in which they report movement of goods from the EU and into the UK. HMRC has indicated that despite Brexit, Intrastat declarations will still be required for imports from the EU.
Here to Help
To help businesses prepare for Brexit, we have produced some helpful materials including:
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