UK warns Brexit import VAT & customs declarations
- Oct 19, 2020 | Richard Asquith
The UK government is warning today businesses to prepare for customs declarations and import VAT from the EU. A Brexit free trade deal with no goods tariffs or quotas was announced 24 December 2020. These come at the end of the Brexit transition period on 1 January 2021 when the UK leaves the EU Customs Union.
The government has written to UK VAT registered businesses today alerting them to the following:
- Import and export process and declarations to move goods between Great Britain and the EU
- You have the option to defer import declarations for up to 6 months, or you will need to start making full import declarations from 1 January 2021
- Consider appointing a customs intermediary to complete these declarations given the complexity and need to have certification with the UK IT customs (CDS and CHIEFS)
- You can apply for a customs and VAT deferment account; or use your customs intermediary
- You can consider import VAT Postponed Accounting instead
- You will need to provide customs intermediary with the following:
- how often you import and/or export
- the type of goods that you are importing, including enough information to choose the correct commodity code
- the quantity of goods
- the customs value – the invoice price for the goods plus any additional customs charges that must be included when calculating the customs duty due
- where the goods are going
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