The United Kingdom is now officially not a part of the European Union anymore and while this has caused much uncertainty - it can be good for businesses in the country. Brexit has been a hot issue for many months and with the end of the year trading rules will change.
What businesses are affected by Brexit?
Many have been asking how Brexit would be affecting their companies. Here are some important things to keep in mind. A company will be affected if it is selling supplies, services, and goods to the UK; if it purchases goods or gets services from the UK; if it transports goods in the UK; and if it makes use of materials and goods from the UK for trading with EU member nations. Businesses are required to file their customs declarations when they are importing goods or exporting them to and from the UK or when they are transporting the goods within the country. Aside from this, businesses should provide data on safety and security. There are certain goods that may need special licenses to be imported or exported and these include waste, GMOs, and chemicals that are hazardous.
What are simplified declarations?
A simplified declaration basically is a shortened version of the usual declaration in the UK. Businesses need to provide customs the same information but there is no need to provide all details right off the bat. All those pieces of information not disclosed yet can be sent in later as a supplementary declaration. However, simplified declarations cannot be used for goods which are already regulated by the Common Agricultural Policy; exported or have been removed from a warehouse under customs; already subjected to unpaid duty, export licensing, and inward processing; and if pre-shipment declaration is done. To apply, a business should be registered and allowed to use the National Export System, which can be done here. It should also be authorized by the HMRC. To be able to use the simplified declaration, a business should have a good record of customs compliance; have regular use of all customs declarations using the Economic Operator Registration Identification number; be able to show how all declarations are recorded for at least four years after the date of submission.
What is the EORI number?
The EORI number is needed by businesses so they can move any goods from and to the United Kingdom and other countries that are not members of the European Union. With the Brexit and starting on the 1st day of 2021, business in the UK would use the EORI number if they wish to move any goods from and to the EU and the UK (including Northern Ireland). Without an EORI, businesses may have to incur additional delays and expenses. Thus, getting an EORI number is important.
Are there changes to the VAT system?
Starting January 1st 2021, businesses in the UK would be allowed to charge their customers 0% for VAT (Value Added Tax) for most of the goods that are exported to the European Union. With the Brexit, VAT would not be applicable to most exports. Also known as the zero rate VAT, businesses can charge customers from the EU a lot less since there is no need to pay for VAT to the HMRC. More information on this can be found here.
The Brexit has definitely changed a lot of things in the UK including trading rules. Brexit trading rules are going to be beneficial for many businesses in the country but it is important to keep to date with the latest news as it is finalized over the next month.
published under Business Address Guides
