The UK Government is pressing ahead with its post-Brexit planning, with the release of a Border Operating Model following engagement with businesses. 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. Find out more about our VAT and Brexit Review service here.
For further information and advice please contact Iain Masterton in our VAT team.