Brexit consequences for your company
Big decision time is coming up, and despite continued uncertainty in several areas, the UK will leave the EU single market and customs union on the 1st January 2021. This decision has tremendous consequences for all companies in the EU, having customers in the UK and buying goods from the UK, as well as for VAT treatment of cross- border trade in certain services.
If you buy goods from the UK, you can find a below checklist, providing you with an overview of what you can do already now:
If you have any questions about trade in services, please feel free to contact us.
• Do you have your exporter and importer registration in home country?
• Have you updated your ERP system, master data, tax codes etc.?
• Have you mapped your flow of goods regarding VAT registration obligation and customs duty?
• Have you reviewed your delivery terms, for you to meet your delivery times?
• Are you sure that your freight forwarder has a Brexit strategy?
• Can you handle returned items? It requires both a UK exporter registration and a UK EORI number.
• When goods are levied with customs duty, your profit is reduced unless you raise the price.
• Check that you have the relevant permissions settled for customs duty purposes.
• Check if your IT setup supports the way, which VAT is declared in the UK.
• You no longer need to validate VAT numbers and do not have to report the EC sales list.
• When you supply goods to private consumers (B2C), they must pay customs duty and VAT – You can avoid that by being registered as an importer in the UK.
• There are special requirements regarding the supply of goods via eCommerce market platforms.
• The need for a bank guarantee must be assessed with the import of VAT. Custom credit only covers customs claims.
• The deadline for requesting the VAT refund is to 31st of March 2021.
• A particular scheme for Northern Ireland will apply.
• If a customs clearance has been started up according to the old rules, it will be processed according to the old rules disregard the 1st of January 2021 is passed.
• A UK EORI number is a must for export and import, except for deliveries to/ from Ireland.