Government sends out Brexit update to UK businesses
Ahead of the UK’s departure from the European Union this week, the government has sent letters to all VAT registered businesses in the country.
In the letters, it sets out actions that businesses need to take across the next twelve months to ensure a smooth transition and maintain a good working relationship with overseas partners.
After 31 January 2020, the UK will enter an ‘implementation period’. During that period, overseas trading terms won’t change - meaning that customs, VAT and excise will all stay the same.
This implementation period will last until 31 December 2020, and during that time, the government will provide more guidance about the changes to follow.
After the implementation period, new rules will apply to trade between the UK and the EU, as well as other countries.
Once the UK is no longer part of the EU, businesses will need to make custom declarations for imports and exports to countries still in the EU.
The government advises that businesses ensure they have an Economic Operator Registration and Identification (EORI) number that starts with ‘GB’, to enable overseas trade after EU departure.
It also advises that businesses decide whether they will use a third party customs agent to make customs declarations or if they want to make the declarations themselves.
Finally, it announces that registration and use of Transitional Simplified Procedures (TSP) for imports from the EU are suspended, and that use of TSP will not be necessary between February and December 2020.
More updates will follow in the coming weeks.
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