From 1 January 2021, the United Kingdom will have the status of a third country and therefore goods sent to or coming from the United Kingdom will be treated in the same way as goods exported/imported from any other country with which the European Union has not concluded any trade or other agreement that might affect customs formalities.
How will my company be affected by Brexit after the end of the transitional period?
From a VAT point of view, exports are exempt supplies and imports are subject to VAT which will be charged by customs.
VAT is paid within the time limits of the tariff (10 or 30 days if a deferment is requested) unless you opt to defer payment to the corresponding monthly declaration. This option requires registration with REDEME and must be exercised in November of the previous period.
For operators sending goods to the United Kingdom.
From the date of the UK’s withdrawal from the European Union will I have to complete any customs formalities?
1 January – From that day the United Kingdom will have third country status and therefore goods sent to the United Kingdom will be treated in the same way as goods sent to any other country with which the European Union has no trade or other agreement that might affect customs formalities.
Amongst other formalities, this means that an export declaration must be made in order to send/remove goods to/from the UK.
However, the withdrawal agreement provides for a transitional period until 31 December 2020, during which Community legislation will continue to apply in the United Kingdom in relation to the internal market, customs union and Community policies. The European Union will treat the United Kingdom as if it were a Member State, except as regards its participation in EU institutions and governance structures. In particular, during that period companies will not have to complete customs formalities.
Will I have to pay duties and other charges in the UK?
During the transitional period no duties or other charges will be paid in the UK.
Unless a trade agreement is negotiated and ratified which provides for other measures, you should consult the information published on the following link to find out what measures will apply in the UK after the end of the transitional period.
What are the implications of leaving the UK for VAT purposes after the end of the transitional period?
The dispatch of goods to the UK will no longer be treated as an intra-Community supply for VAT purposes but as an export. For this purpose, the export declaration will be the proof of the exemption of the supply linked to the export. However, the Community VAT rules will apply to goods dispatched or transported from the territory of the United Kingdom to the territory of a Member State and vice versa, provided that the dispatch or transport has begun before the end of the transitional period and ends after it.
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