The Britons said no to being a part of the EU membership, as from January 2021.
It did not end up with the so-called HARD BREXIT as many had feared.
Instead it ended up with a free trade agreement between EU and Great Britain, keeping the door open for trading and collaboration.
This means that you can import goods to Great Britain without ant difficulties with customs, as you instead can present a certificate of origin or an invoice declaration upon entry. For goods produced outside of EU, the general rules for collecting customs duties will apply, unless there has been created a separate agreement on lower or no customs with the specific country from where the goods originate.
Firstly and most importantly is to distinguish between B2B and B2C trading
Companies can continue to trade with each other including, when it requires importing of goods to Great Britain, but you will have to mark your shipments with “reverse charge”
When trading with private consumers, you must pay attention to the rule of GBP 135.00 limit.
If your sale has a value below GBP 135.00 you will be charged UK VAT which has to be paid to HMRC and this means that you are required to have a VAT registration in Great Britain.
However, if your sales are above GBP 135.00 you are allowed to let your customer pay the VAT and import duties.
If you still haven’t changed anything about your exports to Great Britain and still are selling goods with, e.g. Danish VAT, then it’s not only illegal, but it can also be a costly affair, as you might end up paying both sales VAT and import VAT. With a VAT registration in Great Britain, your import VAT will not constitute a potential expense, but in addition, you can improve your delivery and possibly save money on customs.
Northern Ireland is a part of the UK, but is still to be considered an EU membership state when it comes to trading goods. This means that you can still ship goods to Northern Ireland as it being to any other EU membership state. This is called distance selling and requires certain terms to be met. The treshold for distance selling is GBP 70,000.00 within a calendar year. It’s not possible to report your EU sales via one stop shop, as there is a special agreement on trade in goods to the Northern Ireland. Read more about this here –
Channel Islands – GST
You are welcome to contact us via firstname.lastname@example.org for a non-binding conversation in relation to your business, or if you wish to receive an offer in relation to registration or VAT handling of your deliveries to the UK.