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As 31 December 2020 marks the UK's official departure from the EU trading bloc, there have been several new rules cemented in-place between both countries.

These consequently determine how goods and services are bought, sold or traded across both borders - a primary difference being custom declarations and VAT-application procedures for businesses.

What changes after January 1, and what should you know?

Your Customs Declaration Know-Hows

1. Register your business for an EORI Number

• Check if your organisation is automatically enrolled for an EORI (Economic Operator Registration and Identification Number) by the HMRC. This is mandatory in the event of any goods entering and leaving the UK, between organisations and trading partners.
• Expect delays and increased costs from the HMRC for businesses with no EORI Number.
• Ensure self-certification if at least 40% of your goods originate from outside of the EU and UK.

2. Skip lengthy waiting periods & processes

• Expedite customs declaration processes by checking out Common and Union Transit - especially amidst tight deadlines.
• Apply for a duty deferment which allows payment of customs charges once a month, instead of paying for individual consignments - especially if you import goods regularly.
• Consider appointing a customs agent or freight forwarder to circumvent complex custom declaration processes.

Your VAT Applications

From January 1, UK businesses have to apply VAT when trading with EU countries - and vice versa.

1. Postponed Accounting

Businesses are not required to pay import-VAT when goods arrive at the airport or British port, but need to account for this in their VAT-return form.

Pros: Helps businesses with cashflow issues.
Cons: More paperwork.

2. VAT MOSS for Digital Companies

Although the VAT MOSS (Mini One Stop Shop) scheme - which enabled British companies to declare sales and pay VAT in the EU - was withdrawn, you can still register for VAT MOSS in individual EU countries where services are given.

Pros: Digital businesses can still opt for VAT MOSS.
Cons: Have to register for VAT MOSS in each EU country individually.

Right Accounts provides quality and professional services for your VAT applications - we help your EU businesses to get registered for VAT in the UK. We also save the hassle of tax-return forms by completing them for you.

 Contact us here.