Throughout December, HMRC issued letters to business from the UK and Northern Ireland trading exclusively with customers based in the EU, outlining steps that they feel businesses should take in case of a ‘no deal’ Brexit. The letters were aimed at those trading in goods.
Within the letters, HMRC outlined 3 action business may need to take:
- If they have not already, businesses should obtain a UK EORI number. This number allows businesses to import goods into the UK. Customs procedures will be difficult and time-consuming if an EORI is not held.
- Consider hiring a specialist agent in imports/exports. If there is a ‘no-deal’ it is very likely that processes will change and significantly increased administration will arise.
- Discuss the potential requirements with partners who assist in the movement of your products (freight forwarders etc). Additional documentation etc. will be required and it is vital to ensure a system is in place to deal with this to minimise disruption to the business.
As a ‘no-deal’ Brexit remains a possibility, businesses must make plans for this eventuality.
As always we will keep you updated regarding all VAT news from the UK and around the world.
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