Leaving the EU: Important information for VAT-registered traders
If you didn’t already know, we’re leaving the EU on 31 January 2020!
So, what does that mean for trade with the EU on 1 February 2020? Well, here’s the latest update from HMRC with a letter issued to VAT-registered traders in Great Britain about leaving the EU.
HMRC has written to over 220,000 VAT registered businesses to help them prepare and is also sharing communication on trade arrangements online so that all can access these important updates.
In summary, HMRC advises that from 1 February the UK will enter an implementation period lasting until 31 December 2020. “During this time there will be no changes to the terms for trading with the EU or the rest of the world, unless the rules change for the whole of the EU. This means EU rules for customs, VAT and excise will continue to apply to the movement of goods and trade for this limited time,” advises HMRC.
To keep in the loop after 31 January, you can register to receive email alerts from HMRC and get further support here.
Here’s a couple of key pieces of advice from HMRC regarding trade arrangements after the implementation period comes to an end:
- You’ll need a UK EORI number that starts with the letters ‘GB’ to be able to submit customs declarations to move goods between GB and the EU after the implementation period ends. You can register for the ‘GB’ number at www.gov.uk/eori, if you don’t already have one.
- From 1st Jan 2021, you’ll need to make customs declarations on imports and exports. So, prepare now and decide how you would like to do this. You can either use a third-party customers agent, visit www.gov.uk/guidance/appoint-someone-to-deal-with-customs-on-your-behalf for further information. Or you can do this yourself and HMRC will be providing further updates about making declarations yourself during the implementation period.
The letter from the Directors General, EU Exit and Borders, HMRC goes on to say that: “Registration and use of Transitional Simplified Procedures (TSP) for imports from the EU is currently suspended. You will not need to use TSP between February and December 2020. If you applied for this service, please keep your paperwork safe. In addition, postponed VAT Accounting is currently not available during the implementation period.”
You can keep updated with the latest correspondence from HMRC during the implementation period here.
If you’re in need of support to help with your financial accounts, our team of chartered accountants based in Oxted, Surrey can provide compliance and outsourcing advice to businesses across the UK. Get in touch today.
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