Appropriate registrations
When a GB-based business imports or exports goods, a GB Economic Operators Registration and Identification (EORI) number is needed. HMRC issues the number within four days after you apply online. It’s important to remember that since Brexit, you’re trading with both EU and non-EU countries equally.
Tip. Businesses operating in Northern Ireland are still part of the EU as far as trading in goods is concerned.
A business based in Northern Ireland is still part of the EU as far as trading in goods is concerned. So, the principle of free movement still applies to goods coming from or going to the EU.
Use a customs agent?
Import and export procedures are typically handled by a customs agent or freight forwarder. It is important to fill out all the paperwork because you do not want your goods to be held at the port as a result of missing or inadequate paperwork. Check the List of Customs Agents recommended by HMRC.
The importation of goods into Great Britain will be subject to VAT and customs declarations. Customs declarations are complex, and HMRC has stressed the importance of making them correctly.
Tip. Choosing postponed VAT accounting when your goods arrive in GB makes sense. As a result, you don’t pay VAT when they arrive and instead account for output and input tax on your next VAT return. It is a cash-flow winner for VAT purposes.
Trap If your annual EU purchases exceed £1.5 million, you must complete Intrastat declarations even after Brexit.
A business that purchases goods from overseas suppliers whose shipment value is less than £135 will normally be charged sales VAT by the overseas supplier, who must now register for UK VAT. You will not be charged VAT on your order if you supply the seller with your UK VAT number when you place the order. You will then do a reverse charge entry in Box 1 and Box 4 of your next return.
Tip. £135 is the limit based on the value of the entire shipment, not on the value of each item.
Zero-rated exports
There is no longer any difference between a business in GB selling goods to an EU country and one in GB selling goods to a non-EU country. A company based in Northern Ireland only exports to non-EU countries.
A business based in NI only exports goods to non-EU countries. Zero-rating must be supported by proof of export.
Tip. GB-based businesses no longer have to file EC Sales Lists and Intrastat despatch returns. For goods, but not for services, businesses in Northern Ireland must still submit Intrastat despatch returns, and EC Sales Lists.
Trader Support Service
Consider registering with the Trader Support Service if your business moves goods between GB and Northern Ireland. The site is free and can assist you with any paperwork you need to complete when moving goods from the UK to Northern Ireland or vice versa.
Conclusion
- Get your GB EORI number as soon as possible.
- Make sure your imports and exports are handled by a customs agent.
- Choose to postpone the VAT accounting for all imports of goods to help your cash flow.
- Exports of goods will be zero-rated following Brexit, which means there will be no UK VAT charged.
Further read
Checklist for a UK Business Starting to Trade with EU Customers (uk-accountant.com)
EU VAT when goods never leave the country (uk-accountant.com)
New IOSS scheme for EU importers. Help and Advice. (uk-accountant.com)