No Deal Brexit planning – postponed accounting for import VAT
Planning for a potential No Deal Brexit - postponed accounting for import VAT on goods brought into the UK
DX recognise that timelines in respect of Brexit are increasingly short, and if the UK leaves the EU without an agreement, the UK Government has already advised in their no deal planning notices that they will introduce postponed accounting for import VAT on goods brought into the UK.
This means that UK VAT registered businesses importing goods to the UK will be able to account for import VAT on their VAT return, rather than paying import VAT on, or soon after, the time that the goods arrive at the UK border.
This will apply both to imports from the EU and non-EU countries
For the details on what to expect on VAT for businesses if there is a No Deal Brexit deal, please see www.gov.uk/government/publications/vat-for-businesses-if-theres-no-brexit-deal
After Brexit, Northern Ireland, as part of the United Kingdom, will no longer be in the European Union, whereas the Irish Republic will continue to be a member of the EU. The UK and the EU continue to talk about the future trading relationship between Northern Ireland and the Irish Republic including the so-called back-stop arrangements.
Whatever the outcome of these talks, DX will continue to support customers with their delivery and logistics needs in the United Kingdom, Northern Ireland and Irish Republic. In the meantime, we are advising all our Customers to get ready for a potential no deal Brexit.
As per previous communications Customers will need to make sure they have the following:
- Make sure you and your Customers register for an EORI number for import and/or export purposes.
- Ensure you have Incoterms agreed with your Customers. These are International commercial terms used in international commercial transactions.
- Know how to describe and classify your goods with HS codes. It is vital when sending goods from the UK to the EU or EU to UK that the description of your goods is accurate and accompanied by the relevant HS code for export. The description must be as accurate as possible. You must know the commercial value of the goods and the origin of the goods. We recommend you familiarise yourself with these codes now in readiness. More details will follow on how DX will collate these codes in the near future. Please see this link to the government website for HS codes of goods.
- Customers need to know how to complete commercial invoices to accompany shipments. Every shipment to the EU to UK and UK to EU will need a commercial invoice to help authorities assess goods moving through customs. Certain goods will need certificates and licences. These will need to be provided for goods to move with no delays so we advise you research if your goods fall into these categorise of needing certificates and licences.
- Make sure the receivers/importers of the goods you send understand the potential of any VAT or duty on the goods being sent to them.
Whilst there is plenty of speculation into what will happen in terms of extensions to the March 29th Brexit deadline, we advise all our Customers to familiarise themselves with all import and export rules and regulations to ensure your business is prepared it you send goods to Eire from the UK or to the UK from Eire.
Established in 1975, DX is a leading independent mail, parcels and logistics end to end network operator in the UK & Ireland. Renowned for offering great service, high security, and Customer choice, DX is relied upon by both public and private sector organisations. DX provides proven next-day or scheduled delivery services for mail, parcels and 2-Man deliveries to business and residential addresses nationwide.
As the specialist provider of Customer-driven solutions for the delivery of time sensitive, mission critical, 2-Man and high value deliveries, DX routinely handles goods from many etailers, high street retailers, and a wide range of items from many industry sectors including legal papers, jewellery, optical lenses, pharmacy items and high street fashion. DX is also the preferred provider of the UK Government and foreign embassies for identity documents and visas.
Notes for Editors
For more information, to arrange media briefings with DX, or to request a photograph, please contact:
Niall Jeger, DX Communications Consultant