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As the date the UK is scheduled to leave the EU comes ever closer, we examine the initial VAT consequences of leaving with 'no deal' in place.

Without a deal, imports and exports to and from the UK to the EU, will be treated as if you were trading with the rest of the world; full customs declarations will be needed for goods moving between the UK and the EU, and importers will be liable to pay import VAT and possibly customs duties.

Making customs declarations

The government has announced it will delay such accounting procedures for import VAT on goods brought into the UK, by introducing new Transitional Simplified Procedures (TSP) for customs declarations. It will make importing easier and will simplify the process for an initial period of one year. This means that UK VAT registered businesses importing goods into the UK will be able to account for input VAT on their VAT return, rather than paying the import VAT when the goods arrive in the UK.

This will apply to goods from both EU and non EU countries.

It should be noted that this is only a deferral of import VAT and not any customs duties that may be due.

Businesses can register now for TSP, but only if:

  • They have an Economic Operator Registration and Identification (EORI) number; UK VAT registered businesses should register for an EORI number to trade with the EU
  • Are established in the UK
  • Are importing goods from the EU into the UK

If you require any assistance in applying for an Economic Registration and Identification number (EORI), or registering for the Transitional Simplified Procedures then please do not hesitate to contact the Tax team.