BREXIT: It's never too late to start planning!
With the countdown to the Brexit transition now less than 20 days away and a no deal “Very, Very Likely” you may think you have left it too late to get your business ready for the changes which apply from 1 January 2021 but doing something is always better than doing nothing!
We have left the EU and are currently in the transition period which ends on 31 December 2020. Although it is not fully known what will happen, there are many things that may affect your business.
Does it affect me?
If you are not an importer or exporter, you may not think your business will be affected, but the impact of Brexit is much greater than that:
- Where do your goods come from? Think about the whole supply chain, if they are initially sourced from the EU the cost of these goods may increase due to import duties or extra administration work.
- Could there be a potential delay in delivery due to the new border customs procedures.
- Will this affect your ability to meet the demands of your customers?
- Do you travel to Europe on Business? What will be the Visa & Health Insurance requirements?
- Do you rely on workers from the EU? What are the new UK entry requirements?
All these questions need some thought and planning to ensure that you and your business are not caught out.
Importing to and Exporting from Great Britain and VAT
Depending on your circumstances, there are various things that you may need to consider;
- Have you applied for an EORI number if you import or export to the EU. It takes about a week to get one and you cannot move goods in and out of Europe without one.
- Are you aware you can use postponed VAT accounting for imports from 1 January?
- Are you going to make customs declarations yourself or do you need to appoint an agent to do it for you?
- Custom import declarations for good entering the UK from other countries will be required from mid-2021.
- Do you sell digital services into the EU? If so, you may need to set up a new EU VAT MOSS registration after 1 January 2021.
Things are going to be different from 1 January 2021 but there are still things you can do to minimise disruption and make your business run more smoothly in 2021.
If you need more help or information, then please ask your usual WDS contact.