December 8, 2020
On 1 January 2021, the UK officially leaves the European Union and a new border will be created between the UK and EU. This change triggers serious VAT and custom implications for businesses that import or export between the regions.
Many of these companies are unaware of what’s needed to maintain a smooth trade and avoid unwanted surprises. Here are some basic steps that you can take to keep your goods moving.
Register for an EORI number in the UK and the EU
You’ll need an Economic Operator’s Registration and Identification (EORI) number to continue trading between the UK and the EU. Without an EORI number, the goods won’t be cleared by customs but will be held until the complete paperwork is supplied. This can lead to costly delays and incurred storage expenses. Click here for the EU guidelines on EORI.
Check if you need VAT registration
As of 1 January 2021, shippers importing themselves and selling goods into the EU and UK may have to be VAT registered. This means that in some circumstances businesses will not only require an EORI number to trade, but potentially a VAT number registered in the company’s name as well. VAT registration and compliance can be a complicated process, find out more about our partners at Fiscal Solutions, VAT specialists, who help businesses trade globally.
Appoint an Importer of Record
If the consignee (receiver) is not the declarant (responsible for the import), then you’ll need an Importer of Record (IOR). The IOR is responsible and liable for the customs declaration. For UK businesses exporting to the EU this can either be an EU-based subsidiary or, in some circumstances, an IOR service can be used. Fiscal IOR can provide you with an IOR service plus we can also act as an import representative, allowing you to import seamlessly into both the EU and the UK, ensuring that goods are cleared without costly delays or fines.
Speak to an expert
With the UK’s exit from the EU less than a month away we’re helping many businesses get ready for the change to maintain smooth trade channels between countries, provide import representation and a solution to the numerous hurdles for importers and exporters.
For more information or advice, please click the enquire button down below.