VAT on Imports and Exports to the EU from 1 January 2021

HMRC have produced clear guidance on what individuals and businesses will need to do when we have left the EU on 1 January 2021.  There is an HMRC tool to use which will give specific information for your own personal or business circumstances which can be found here.  

For businesses who import or export goods the most significant information will relate to the import and export requirements, the VAT to be charged and the duty to be paid on imports.

If you will be importing you can find out what you need to do to Import Goods from the EU.

If you are exporting you can find out more from the link Exporting Goods to the EU.

VAT registered businesses will need to Zero Rate goods which they supply to the EU from 1 January 2021.  There will be some exceptions and businesses should find out if their exports are to be treated differently.  Every businesses exporting to the EU from 1 January 2021 will need to have an EORI number.  This is your GB VAT number with 000 on the end.

Businesses exporting to the EU will no longer need to complete EC Sales lists for sales from 1 January 2021.

If you are importing goods you will need to pay import duty and VAT before you receive them.  The VAT can be reclaimed on your VAT return once you receive the Import VAT Certificate (C79) from HMRC.  This is your evidence that the VAT has been paid.

Importing and exporting is likely to be more complex from 1 January 2021.  It is important to understand what VAT you have to charge and what you can claim back as well as the rules which will apply to imports and exports.  Visit HMRC website for more information.