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Brexit Transition Period Ending – what you need to know about import VAT

Author: Naomi Cowan

Tags: Quarterly update - November 2020

Did we nearly forget that the end of the Brexit Transition Period was coming up on 31st December?

Well, if we had, the new Government ‘check, change and go’ campaign should help us remember and navigate the hurdles of exiting the EU.

The UK will leave the EU Customs Union and Single Market regardless of the outcome of any negotiations.

If you are a VAT registered company importing goods, it is important to understand the changes from 1st January 2021. If you already import goods, you should automatically have been issued with an EORI number.

The current rules require VAT on imported goods to be paid on receipt, meaning companies have had to fund the VAT for 3 to 4 months until it was re-paid through their VAT return.

From 1st January, the UK Global Tariff (UKGT) will replace the EU’s Common External Tarif, meaning VAT will not be paid at the moment of import, but rather paid with your VAT return

This change is just one of hundreds of rules and eligibility criteria which are changing due to Brexit. Whilst we know some, others are still to be announced – we hope within good time.

Whatever the government announces and when, we will keep you up to date about what it means for you and your business.