VAT and Customs Brexit review service
Following the General Election and subsequent passage of the Withdrawal Agreement through the Houses of Parliament, the UK left the EU on 31 January 2020. There is a transitional period in place until 31 December 2020 after which the current laws on VAT and Customs as they apply to trading with EU customers and suppliers will change along with other existing EU rules and regulations.
With the COVID-19 crisis still ongoing this does not allow for a lot of time to prepare as leaving the EU will involve significant changes to the way UK businesses trade with EU suppliers and customers. Some businesses have already undertaken such assessments to maintain a competitive advantage: if you have not acted yet, we recommend you do so now.
We offer reviews of your business to analyse the impact of Brexit on your operations. Our indirect taxation specialists will discuss your business with you to provide advice on your preparations.
Our review will look at YOUR business and focus on your current dealings with suppliers and customers in the EU and your supply chains.
We will outline what changes need to be made to your procedures and processes and whether these changes will result in any additional costs to you.
We will look at the implications of your staff travelling to the EU for conferences, trade fairs or meetings (including Northern Ireland).
We will provide training to your finance staff in basic Customs declarations and provide guidance on the wider commercial impact of trading with third countries.
Our training will outline the general changes that trading with EU will bring for goods and services and then focus on the specific changes as they relate to your business.
From our analysis and discussions with key personnel, we can make recommendations which might alleviate cash flow or cost burdens for the business and assist in decision making to protect particular markets.
Our aim is to work with the business during this process to ensure that Brexit does not disrupt the business’ plans for the present and for the future.
Chiene + Tait is part of an international network of firms, AGN International, which has offices in most major cities and countries of the world.
Some businesses may have to consider setting up a branch or hold stocks of goods in other EU countries depending on their circumstances. If this is the case, Chiene + Tait is well place to be able to deal with this through our international network of colleagues.
The UK Government has announced that it will make grant funding available to businesses who need to take advice. We can provide assistance in obtaining this funding as part of our overall service to you.
The UK Government is pressing ahead of its post Brexit planning with the release of a Border Operating Model following engagement with industry. The 206 page document is designed to give guidance to industries on how border issues will work after the transition period ends on 31 December and the actions that traders, hauliers, ports and carriers need to take.
On December 31st 2020 the transition period with the EU will end, and the UK will operate a full, external customs border with the EU and the rest of the world. This means that controls will be placed on the movement of goods between Great Britain (GB) and the EU for the first time.
The Government has broken this down into 3 phases up until 1 July 2021 to assist businesses in planning and preparation.
The key messages which we urge businesses to focus on as 31 December approaches are as follows:
- Get a customs intermediary. Intermediaries can help traders find the information needed to complete formalities and submit the required declarations, for example customs information to HMRC systems. This simplifies the declaration processes for traders. If you decide not to use an intermediary, you will need to make declarations yourself.
- Apply for a duty deferment account. Traders who import goods regularly, may benefit from having a duty deferment account. This enables customs charges including customs duty, excise duty, and import VAT to be paid once a month through Direct Debit instead of being paid on individual consignments.
- Prepare to pay or account for VAT on imported goods.
- Ensure you have International Driving Permits if you have vehicles travelling outside the UK.
- Apply for a GB Economic Operator Registration and Identification (EORI) number. This is required for all businesses moving goods into or out of the UK.
The link to the document is contained here – https://www.gov.uk/government/publications/the-border-operating-model?utm_source=43c65c94-3755-427b-a052-15742071d45e&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
We will continue to produce guidance to assist businesses with Brexit planning and are available for consultations on what action needs to be taken by businesses.
For further information and advice please contact Iain Masterton in our VAT team.
The Government has announced details of the UK’s new post Brexit Customs Duty tariff regime. The UK Global Tariff (UKGT) will replace the EU’s Common External Tariff on 1 January 2021 at the end of the Brexit transition period. Previously, the UK Government produced a “no deal” UK tariff which exempted around 85% of goods from the tariff regime. The new tariff is more detailed and claims to be more simple and streamlined that the current EU tariff for businesses to navigate.
We will be publishing further information on this, however the detail of the Government’s announcement can be seen here.
Meet the team
We hold regular events for our clients and issue regular communications to highlight important developments and new legislation for charities and their governance.