By the arrival of 2021, Brexit finally enters live and in aoperational phase.
The agreement between UK and EU announced on Christmas Eve provides more clarification than trade between the two areas as from the end of the transitional period.
Let us see together what the main changes affecting trade are:
- From January 2021, a customs declaration will be required for each consignment between the United Kingdom and the European Union.
Although the trade and cooperation agreement between EU and UK talks about ‘zero tariffs’ this does not eliminate the obligation to issue a customs declaration and therefore it will be necessary to accompany the consignment by proforma or commercial invoice.
The customs declaration is necessary to allow goods to cross the border, since UK will leave the single market and the customs union.
- Requirements for Origin of Merce: to benefit from the EU-UK agreement providing for duty-exemption, it is essential to demonstrate the origin of the goods by invoicing declaration. Without this declaration, it will not be possible to exempt goods from payment of the duty and additional costs could be applied.
- Changes in VAT in UK will be introduced from January 2021: in view of the fact that this change is not part of the EU-UK agreement, VAT will be applied on all goods imported into UK from any country in the world.
This means that most shipments imported from any country, including the EU, which have a value of £135 will be subject to VAT payment.
For goods with a value of between £0 and £135, VAT must be absolved at the time of sale and therefore remains the responsibility of the seller. If your company would like to ship goods with and for UK make sure that you fulfil these terms so that you are not surprised by additional costs and not predicted.
To get more information, you can contact Smyb’s staff.