With the long-awaited Brexit departure fast approaching, businesses are being urged to take the necessary measures to ensure they comply with the new rules regarding business with and within the European Union (EU).
The transition period after Brexit will come to an end and from 01 January 2021, and there will be new rules coming into effect:
From 01 January 2021, you will need to make customs declarations when you import goods from the EU, and specific goods will require certain licenses or certificates. In addition, you need an EORI number that starts with GB to import goods.
If you move goods from an EU country, you must add acquisitions and any tax due to your VAT Return – you can reclaim the VAT paid if the goods are for you to make taxable supplies or use in your business.
When importing goods from non-EU countries you will need to:
- Get an EORI Number
- Find the commodity code for the goods you are importing, which tells you how much duty you pay and if you need a license
- Declare your imports to customs
- Pay VAT and duty
You will have to pay VAT directly to HM Revenue and Customs (HMRC) at UK rates on goods imported from outside the EU when they are first brought into the EU or the UK.
You will need to get a licence or certificate to import some types of goods. You might also need to pay an inspection fee for some goods before they are allowed into the UK.
Knowing how to take control of your business finances to maximise profits can be difficult, especially with the current climate. Knowing the common mistakes to avoid can be difficult and can leave you feeling unsure.