BUT we can continue talking about what we do know if we leave the EU with a ‘no deal’.
Zero Import DUTY
HMRC has announced a Zero Import DUTY will be payable for the first 12 months when importing from Europe only.
VAT Deferred Scheme
The government will introduce postponed accounting for import VAT on goods brought into the UK. This means that UK VAT registered businesses importing goods to the UK will be able to account for import VAT on their VAT return, rather than paying import VAT on or soon after the time that the goods arrive at the UK border. This will apply to imports from the EU and non-EU countries.
Transitional Simplified Procedures (TSP)
HMRC has written to 145,000 VAT-registered businesses trading with the EU to inform them of the simplified procedures. The letter advises that once registered for TSP, businesses will be able to transport goods from the EU into the UK without having to make a full customs declaration at the border. Businesses will also be able to postpone paying any import duties until the month after import.
The TSP policy will be reviewed 3 to 6 months after its introduction with at least 12 months notice being given to businesses before its withdrawal.
The new procedures reduce the amount of information importers are required to provide in an import declaration by allowing importers to:
- Defer giving a full declaration until after the goods have crossed the border; and
- Defer paying any duty until the month following importation
Where tariffs apply to the imported goods, TSP registered businesses will be required to set up a direct debit to defer the payment of any import duties. You will need an EORI number to register.
If you import from outside the EU then you will already have an EORI number, however if you are trading with Europe and do not have an EORI you will need one after Brexit and should apply now. Application is free and quick to complete.
For further information on the above please contact your designated account manager.