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The Accountants for Growth

Brexit Thoughts and Issues

Brexit Thoughts and Issues
EORI Important reminder
  • If you are moving goods between the EU and Great Britain (not including Northern Ireland) from 1st January then you will need a GB Economic Operator Registration and Identification number from HMRC. Don’t leave it too late.
VAT Mini One Stop Shop (MOSS) reminder
  • This is relevant if you are a UK supplier of cross-border telecommunication, television and radio broadcasting, or digital services to EU non-VAT registered customers and you presently account for VAT by registering on the EU MOSS scheme.
  • Your last EU VAT MOSS return will be for the period ending 31st December 2020.
  • From 1st January 2021 you will may need to register for the Non-EU MOSS scheme and deregister from the EU MOSS or register for VAT in each EU country you sell to.
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  • The Non-EU MOSS registration will have to be set up in one of the remaining EU countries. Eire might be preferable due to the language issues and their online procedures are broadly in line with the UK. Note that some of the EU countries insist on appointing a local agent for carrying out this work.
  • If you make sales in January 2021, this registration will need to done by 10th February 2021 (i.e. 10 days after the first month’s sales).
 
Northern Ireland Protocol  
  • From 1st January 2021, there will be changes on the way goods move between Great Britain (GB) and Northern Ireland (NI).
  • The Customs Declaration Service will be used for the declaration on the movement of goods to or from NI, including goods moving from GB.
  • Traders will need to adhere to new digital import declaration requirements and digital safety and security requirements for goods entering NI from the rest of the UK.
  • The Government have established a new free service, the Trader Support Service (TSS), which will provide an end to end service guide through all the import processes.
  • Traders can use the TSS to complete digital declarations at no additional cost.
 
 
Duty Deferment Account (DDA/Simplified Import VAT Account (SIVA)
  • If you are a regular importer of goods you could consider a DDA or even an enhanced deferment account called a SIVA.
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  • This will enable HMRC to release the goods without the immediate payment of duty or import VAT being required.
  • Note that the DDA is supported by a bank guarantee for the duty and the VAT, whilst, in the case of the SIVA, it is required just for the duty.
  • There may be a bank fee involved for providing the guarantee facility.

If you wish to discuss this or other issues, please do get in contact with us.
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