- Brexit – end of transition period | 1 January 2021
Issue: The UK will be leaving the European Union’s single market and customs union on 31 December 2020. Controls will be placed on the movement of goods between Great Britain and the EU, and customs duty and import VAT may be payable. Businesses will face customs checks and must submit customs declarations when moving goods between Great Britain and the EU. Between 1 January and 1 July 2021, importers of standard goods from the EU to Great Britain may be eligible to defer full customs declarations for up to six months.
Action: Businesses trading in goods with the EU should prepare now by:
- applying for an economic operators registration and identification (EORI) number;
- deciding how to make customs declarations (eg in house or using a customs agent);
- applying for a duty deferment account;
- identifying commodity codes and tariffs applicable to their goods under the UK Global Tariff;
- checking suitability for facilitation procedures (eg simplified declarations); and
- considering commercial arrangements (eg on contracts or VAT registrations in EU member states).
For more information, see RSM’s article: VAT and customs duty as Brexit concludes.
There will be other VAT and customs consequences for businesses trading with the EU and in Northern Ireland that have yet to be confirmed, so it is important to watch closely for further developments.
For more information please get in touch with Ian Carpenter.