With the UK’s transition period ending on December 31st there are many uncertainties especially with regard to the UK logistics industry and how it will inevitably impact those who are currently trading in EU countries.
We have therefore put together this blog post to inform you on how this may affect your business flow to and from the EU, what you need to do to prepare for the changes and how we can assist you at Regional Express in making the post Brexit process as smooth as possible.
Brexit 2021 – The Latest
The UK officially left the EU on the 31st January this year and the nearer it gets without an agreement it looks as if it will be a hard Brexit with the free circulation of goods no longer available between the UK and the EU.
We have been working with our customers and trade to ensure we are prepared for any eventuality. Our goal is to be jointly ready well before the end of December deadline to try and provide our clients with the smoothest possible Brexit experience and keep any inevitable trading issues to a minimum.
We will outline the changes, how you need to prepare for a Brexit, documentation and customs compliance, trade deal or not.
What Will Happen if it is a No Deal Brexit?
Deal or no deal Brexit – our borders will close and you will be required to complete an export customs declaration for goods leaving the UK, which is submitted to customs for approval. On arrival in any EU country an import declaration will be required to clear the goods into that country and Duty / VAT will have to be paid / accounted for before customs release the goods. We can assist you with clearances for both road and air freight movements.
For both the export and import entries mentioned above neither Amazon or the Customs Broker can be the importer. On all occasions you will be the exporter and the importer. Before a customs entry can be completed the Customs Broker will need to be furnished with information.
How will Brexit Affect Business to Consumer Trades?
From next year, the rules in the EU are set to change dramatically regardless of Brexit and your tax advisers will need to assist you with these changes. This is a major EU initiative and your tax advisers should be contacted to ensure you are registered if your business model requires it. The I-OSS introduction which although postponed until July 2021 will have an impact on your business flow and Vat accounting.
We recommend that you review both the Brexit and I-OSS changes and how this will affect your movements.
Valuation of Goods
The value of your products when importing is subject to certain rules which are universal in international trade. If the UK leave without a deal then we will be adopting the WTO-GATT tariff. Regardless of this the UK/EU use the same valuation rules and these will be applied at the time of import to assess whether you are paying the right amount of tax.
As there is no Sales transaction taking place (you are importer and exporter) you might decide to lower the value declared to keep your taxes down, do not do this.
Your Broker can guide you on this but ultimately it is your declaration to the Customs authorities.
How will Brexit Affect Duty and Tax?
You may need a tax consultant in any EU country you are trading with, they will be able to complete your tax returns which in turn declares the VAT on your sales, but also allows you to claim back the VAT you paid on arrival as the importer of the goods.
If you require a tax consultant to discuss this with please contact us and our in-house tax department will help you with obtaining EORI numbers / VAT numbers / Completing VAT returns to comply with Country regulations.
Summary and Checklist
- Make sure you have a valid UK & EU EORI Number
- Make sure you are using the correct HTS codes for your products
- Check EORI registrations
- Commercial/customs Invoices have the correct information for the broker to clear customs
- You have an arrangement in place for Duty/VAT to be paid on arrival to avoid delays
- You have a Tax Consultant for each EU Country you export to so you can declare Sales VAT and recover import VAT
Regional Express Ltd has been working with Amazon as a Freight Forwarder, Customs Broker & Tax Consultant since 2012 and we regard ourselves as a one-stop-shop to handle all requirements and compliances when exporting to and from the EU. We can help you obtain all the above and make your switch to Post Brexit seamless and above all without fuss.
Regional Express can apply for an EORI number on your behalf for a fee of EUR 100.00. To apply, please complete the form here
For further information on brokerage and compliance contact:
Charlie Milligan email@example.com
For further information on EORI numbers, Tax Consultancy and information on our VAT Portal contact:
Neil Curran firstname.lastname@example.org