HMRC urges VAT-registered businesses to prepare for Brexit trading changes
16 Sep 2020
HMRC has written to VAT-registered businesses that trade with the EU outlining how they should prepare for Brexit trading changes set to take effect from 2021.
The letters have been sent to VAT-registered businesses in Great Britain trading with the EU, or with the EU and the rest of the world.
From 1 January 2021, the UK will operate a full, external border with the EU. From this date, businesses will be required to submit declarations when importing and exporting goods that are categorised as 'controlled'.
Import controls for non-controlled goods will be introduced in three stages in January, April and July.
The letters outline what businesses need to do to prepare for new processes for moving goods between the UK and the EU from 1 January 2021. Businesses are urged to ensure they have a UK Economic Operator Registration and Identification (EORI) number, and have been advised to decide how they will make customs declarations. From 1 January 2021, businesses will be able to use postponed VAT accounting to account for import VAT on their VAT Return for goods imported from anywhere in the world. For more information on this, please visit HMRC's dedicated page on changes for VAT-registered businesses that will come into effect on January 1st 2020 HERE.
HMRC has also urged businesses to check if their imported goods are eligible for staged import controls.
Further advice on how to prepare can be found HERE.