The UK government has issued updated guidance on exporting goods to the EU. Now that the UK has left the EU, any UK-based company following standard export procedures must do the following:
- Get an EORI number.
- Check if you need export licenses or certificates. Certain goods, such as agricultural products need to be accompanied by the relevant certification. Specified controlled goods will likely need additional certification.
- Keep records of the exports for six years. The documents may be required to claim refunds or relief.
Use a customs intermediary
Customs processes are complex and require specialised knowledge and systems.
The government guidance notes that most businesses use an expert intermediary to manage the customs processes on their behalf.
When is VAT due on exports?
Companies do not have to charge VAT on goods exported from Great Britain to a destination outside the UK, including EU states.
In order to zero rate exports, you will have to provide evidence of export.
If you do not provide the appropriate documentation within the correct time, however, you will have to account for VAT.
Survey reveals extent of UK exporter confusion
According to a survey published by the British Chambers of Commerce, 49% of UK exporters report issues with adapting to Brexit.
The problem is especially acute among UK manufacturers. 51% of manufacturers report difficulties adapting to the new rules and processes for trading goods between the UK and EU.
Above all, exporters have voiced concerns about tariffs, red tape and delays.
Tariff-free trade in practice
The EU-UK trade deal allows for zero-tariff and zero-quota trade, providing rule of origins requirements are met.
As a result, firms should consult an expert if you are uncertain how to prove RoO requirements, or if you need clarity on whether you qualify for tariff-free trade.
Disclaimer: Reproduced/Adapted with permission from VATGlobal.