Buying and selling goods in the EU after Brexit

Appropriate registrations

If a GB-based business imports or export goods, a GB Economic Operators Registration and Identification (EORI) number is needed for the customs declaration procedures. It only takes ten minutes to apply for it online, and HMRC issues the number within four days. Don’t forget that since Brexit , there is no difference between your trading with EU and non-EU countries.

Tip. A business based in Northern Ireland is still part of the EU as far as trading in goods is concerned. So, the principle of free movement still applies for goods going to or coming from the EU into NI.

Use a customs agent?

Most businesses use a customs agent or freight forwarder to handle the import and export procedures for them. This is important because you don’t want your goods held at a port because of incomplete or inadequate paperwork. All imports of goods into GB will be subject to VAT and customs declarations. Customs declarations are complicated, and HMRC has stressed the importance of correct declarations.

Tip. It makes sense for you to elect for postponed VAT accounting when your goods arrive in GB. This means that you don’t pay VAT when they arrive and you instead account for output and input tax on your next VAT return. It is a cash-flow winner for VAT purposes.

Trap. Despite Brexit , you must still complete Intrastat declarations on your arrivals of goods from the EU if your annual EU purchases exceed £1.5 million.

Imports of £135 or less

If your business buys goods from overseas suppliers, where the shipment value is less than £135 you will normally be charged sales VAT by the overseas seller who must now be registered for UK VAT. But if you provide the seller with details of your UK VAT number when placing your order, you will not be charged VAT and will do a reverse charge entry in Box 1 and Box 4 of your next return.

Tip. The £135 limit is based on the total shipment value and not the value of each item within the shipment.

Zero-rated exports

All exports of goods from GB are zero-rated and there is no longer any difference between a GB business selling goods to an EU country compared with a non-EU country. A business based in NI only exports goods to non-EU countries. Proof of export must be retained to support the zero-rating.

Tip. EC Sales Lists and Intrastat despatch returns are no longer required for a GB-based business. A business in NI must still complete Intrastat despatch returns, and EC Sales Lists for goods but not services.

Trader Support Service

If your business moves goods between GB and Northern Ireland, you should consider registering with the Trader Support Service. It’s a free resource and will help and advise you with the necessary paperwork that is required when goods move from GB to Northern Ireland or vice versa.