VAT, Customs & Excises

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Focus Brexit

PREPARE FOR BREXIT WITH

The UK officially left the European Union on January 31, 2020 and as of January 1, 2021, it will cease to apply European standards and regulations.

Customs change from January 1, 2021

For the EU:

For the movement of goods between the EU and the UK, EU countries will no longer require Intrastat declarations, as statistics will be made on the basis of export declarations; on the other hand, the United Kingdom will continue to impose Intrastat declarations.

The rights of customs:

Unless a free trade agreement is concluded providing for an exemption or reduction of customs duties, the importation of goods into the United Kingdom from the EU will result in the payment of customs duties on the basis of the British customs tariff. For imports from the UK, it will be taxed on the basis of World Trade Organization tariffs.

For the United Kingdom:

UK import operations will require a UK Customs representative and UK EORI number. If you have a European EORI number, it can no longer be used in the UK. If this is the case, then you need to apply for a UK EORI number, contact us so we can help you.

There will be border controls in the UK and at the first European border point, so it will be necessary to lodge an export declaration with customs in the country of departure and an import declaration with UK customs.

In order to avoid border congestion, the British and French authorities have set up systems for prior customs declarations.

Customs change from January 1, 2021

UK:

  • BtoB sales of goods shipped from the EU to the UK will no longer be subject to the intra-community delivery / acquisition regime.
  • All sales of goods shipped from the EU to the UK (BtoC and BtoB) will be subject to the import / export regime.
  • Therefore, the entry of goods into the UK will require the payment of import VAT in addition to customs duties.
  • However, it will be possible to benefit on request from the reverse charge regime for import VAT in the United Kingdom.
  • If you have a UK VAT number, it will remain unchanged from January 1, 2021.
  • However, it is advisable to use a UK tax agent to take care of all UK VAT administrative procedures on your behalf.
  • Eurotax offers you its tax agent service in the United Kingdom.

In the EU:

The sale of goods shipped from the UK to the EU will be subject to import / export regime. The entry of goods into the EU will result in the VAT payment of country of final consumption, and this on the basis of goods value & customs duties. In some European countries, however, it is possible to benefit from the reverse charge regime for import VAT.

Having a European EORI number is mandatory in each of the member states where you import goods and where you declare your taxable sales in the EU.

If you are VAT registered in the EU, in some European countries, your VAT number will no longer be sufficient. You must appoint a tax representative established in the country of delivery. To find out if you need to appoint a tax representative, contact us.