VAT News

UK-HMRC issue letter to businesses regarding 'no-deal' Brexit

Throughout December, HMRC issued letters to business trading exclusively or heavily with customers based in the EU, outlining steps that they feel businesses should take in case a deal for the UK's withdrawal from the EU cannot be reached prior to their exit. The letters were aimed at those trading in goods.

Within the letters, HMRC outlined 3 key points for businesses:

1-If they have not already, businesses should obtain a UK EORI number. This number allows businesses to import goods into the UK. Customs procedures will be difficult and time-consuming if an EORI is not held.

2-Consider hiring a specialist agent in imports/exports. If there is a 'no-deal' it is very likely that processes will change and significantly increased administration will arise.

3-Discuss the potential requirements with partners who assist in the movement of your products (freight forwarders etc). Additional documentation etc. will be required and it is vital to ensure a system is in place to deal with this to minimise disruption to the business.

After the events of this week, it is clear that a 'no-deal' Brexit remains a possibility and so plans must be made for this eventuality.

Related articles

Five Key Changes to China's VAT in 2019

Part of a major overhaul of pre-existing VAT systems, the Chinese Government are implementing a number of significant changes to their VAT laws and processes.

Read more
Changes To International VAT Rates in 2019

A concise list of all major changes made to Value Added Tax (and Goods & Services Tax) rates around the world that have come into effect since 1st January 2019.

Read more
Bahrain’s biggest businesses prepare for their first VAT return

By the end of the month, Bahraini businesses will have to submit their first ever VAT return within the country.

Read more