Our notes on Brexit HMRC’s webinar

HMRC is organizing webinars about the impact on VAT of a no deal Brexit. Here is our short summary of these webinars.

We attended the latest HMRC´s webinar on Brexit and took the following notes and action points for businesses operating an international activity into or from the UK.

  • EORI numbers: HMRC is allocating EORI numbers automatically to all businesses who they believe are trading with the EU. HMRC is taking this information from ECSL returns filed in the UK. If you submit ECSL returns, you would have received a letter from HMRC with your EORI number. It is also possible that you were not automatically registered. If this is the case, you can apply manually for an EORI number. Applications are normally processed within 3 working days.
  • Custom declarations, Import declarations (SAD) and authorizations. After a no-deal Brexit, intra-Community supplies will become exports and intra-Community acquisitions will become imports. That means all customs documentation, SAD, and relevant authorizations must be sorted ahead of time. Businesses can do it their selves registering via HMRC´s website. Alternatively, they can also engage Freight forwarders, brokers and customs agents or express couriers to do this.
  • Transitional Simplified Procedures (register online): TSP will allow you to reduce the amount of information you need to give in an import declaration when the goods are crossing the border.  You should check whether you eligible to use TSP. This regime is not mandatory, TSP is an option designed to make things simpler.  You can register here. In principle, TSP will be in place 1 year or more. It will be reviewed after 3 to 6 months.
  • Common Transit Convention (CTC): This refers to the common system of paying import VAT upon arrival of the goods to destination. This system will remain in place with small changes. You should check HMRC´s website for these changes. CTC is only available between CTC countries.
  • Deferral import VAT: This means paying import VAT at a later stage. It will be possible for imports from EU and non EU countries. An application must be submitted and several requirements must be met.
  • Low Consignment Relief will dissapear (15 GBP): This is an important change for all online sellers. It will not be possible to benefit from this regime after Brexit. These sellers will need to register for VAT in the UK to pay VAT or, alternatively, use a parcel operator to handle their VAT obligations for them.
  • EU refund claims no longer possible: Only 13th Directive refunds will be allowed after Brexit. An individual application must be submitted to HMRC for VAT incurred in the UK.
  • VIES database replaced: UK VAT numbers will not be available to be checked in VIES anymore. A new tool will be made available to check UK VAT numbers via HMRC. This tool will only available when Brexit happens.
  • ECSL returns not due: These returns must be filed before Brexit. Once the UK leaves the EU, ECSL returns will no longer be due.
  • Check trade Tariff database: HMRC has a good commodity codes, duty and VAT rates database. This tool will become increasingly useful after Brexit. You can access this tool here.

The webinar we attended was held on 2 September 2019. The above information is only our interpretation of the information provided by HMRC. Of course, it should not be read as official guidance from HMRC.

How can we help you preparing for Brexit?

Marosa has a transition package ready for all UK businesses registered across the European Union. We will automatically transform your direct VAT registrations into VAT registrations with fiscal representative where required (see here a list of fiscal representative requirements).

For those businesses currently recovering input VAT in the UK via EU VAT Refunds (Directive 2008/09/EC), we will submit individual 13th Directive claims and follow up until these amounts are effectively recovered.

Contact us to know more about our Brexit readiness package.

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