If you buy and sell goods in Europe you have a lot to consider before the end of the year. The transitional period end date with the EU is almost upon us. In light of COVID-19 many business owners are much less prepared for this change than they’d like to be. We summarised some of the implications for goods importers and exporters below.
HMRC will issue online statements that will show the amount of VAT postponed in the prior month. The amounts should be entered onto your VAT return as follows:
If you import goods into the UK make sure you have registered for a Economic Operator Registration Identification (EORI) number if you have not already done so.
If you need help preparing for the impact of Brexit please get in touch with us. Our experts would be delighted to help.
For businesses, it is imperative to plan ahead for the new customs process (especially if you have not experienced this before). In some cases, it could even be beneficial to look at setting up an EU office to avoid bringing goods into the UK.
While most EU imports currently arrive into the UK VAT and duty-free, this will be different post-Brexit. Goods will be held at ports into any duties have been settled and if you are looking to re-sell this to another EU customer, goods would be stopped again before entering the country and the customer would have to pay customs and duty.
The biggest losers will be importers who are not VAT registered, as they will ultimately have to pay import VAT on goods now and not be able to reclaim this at a later date. As member of the Institute of Export and International Trade, Venn Accounts are perfectly positioned to help our clients with preparing for Brexit with our range of VAT accounting services.