At 23:00 GMT on 31st December 2020 GB left the EU VAT Regime, Customs Union and the Single Market. Therefore all trade is now governed by the EU - UK Trade & Cooperation Agreement.
agreement.
For VAT all transactions will be IMPORTS & EXPORTS not EU transactions. For goods B2B transactions will be 0% export and import VAT under postponed accounting which will have a cashflow neutral affect. However, for goods B2C the accounting for import VAT must be done through indirect representation/fiscal representation or OSS when established.
Under the EU-UK trade and cooperation agreement there are zero tariffs and quotas (subject to Origin Status) however all customs declarations still need to be completed. All goods will require a TARIC code and businesses will need to follow all Import & Export procedures required for their goods and packaging.
As trade will now be conducted under International Chamber of Commerce Trade rules all contracts must be revised to include Incoterms. This will clarify the Obligations, Risks & Costs involved in the movement of goods.
Transport, Hauliers must now ensure that the relevant Insurances, Licences and permits are in place for transport outside of the EU. Drivers must be aware of their passport requirements,
There is a major challenge both financially and logistically facing many post 1/1/21.
Check out our take on what Brexit means with this short video below.
