Skip to the content Global Logistics Freight & Delivery Experts | SEKO Logistics Menu Free Trade Agreement: Goods Details-EU or UK origin goods when entering the UK will need extra document codes in the entry depending on the type of declaration. Codes U110/111/112/113/114 Simple-Goods with a declaration can claim Duty Free status if the goods have the required documents to add the codes. Details-EU DDP Sellers into the UK Market will now have to register for UK Import VAT and acquire an EORI number to sell to the UK market. Simple-EU DDP Exporters need to register for Import VAT and GB EORI Details-Good moving from the UK to NI will require a safety & security ENS message sending to the arrival port in Norther Ireland. After this customs declaration will be required to account for any goods at risk of moving onwards to the Republic of Ireland. A GMR goods movement reference will also be required by the ferry company prior to sailing to access the port. Simple-UK Exporters need to register for the TSS system to complete the export entries prior to shipping to Norther Ireland & acquire a GMR to allow ferry crossing. Details-EU or UK origin goods when entering the UK will need extra document codes in the entry depending on the type of declaration. Codes U110/111/112/113/114 Simple-Goods with a declaration can claim Duty Free status if the goods have the required documents to add the codes. Details-EU DDP Sellers into the UK Market will now have to register for UK Import VAT and acquire an EORI number to sell to the UK market. Simple-EU DDP Exporters need to register for Import VAT and GB EORI Details-Good moving from the UK to NI will require a safety & security ENS message sending to the arrival port in Norther Ireland. After this customs declaration will be required to account for any goods at risk of moving onwards to the Republic of Ireland. A GMR goods movement reference will also be required by the ferry company prior to sailing to access the port. Simple-UK Exporters need to register for the TSS system to complete the export entries prior to shipping to Norther Ireland & acquire a GMR to allow ferry crossing. CHANGES TO VAT TREATMENT OF OVERSEAS GOODS SOLD TO CUSTOMERS FROM 1 JANUARY 2021 BACKGROUND At the end of the transition period, the government will introduce a new model for the VAT treatment of goods arriving into Great Britain from outside of the UK. This will ensure that goods from EU and non-EU countries are treated in the same way and that UK businesses are not disadvantaged by competition from VAT free imports. It will also improve the effectiveness of VAT collection on imported goods and address the problem of overseas sellers failing to pay the right amount of VAT on sales of goods that are already in the UK at the point of sale. This paper follows publication on 13 July 2020 of The Border Operating Model and expands on the sections covering the VAT treatment of consignments not exceeding £135 from 1 January 2021. This paper does not cover matters specified in the Northern Ireland protocol. The government continues to work through the implications of the Northern Ireland Protocol, including in relation to VAT and excise. The government is committed to providing guidance on how the Northern Ireland Protocol will work ahead of the end of the transition period. OUTLINE OF THE CHANGES For imports of goods from outside the UK in consignments not exceeding £135 in value (which aligns with the threshold for customs duty liability), we will be moving the point at which VAT is collected from the point of importation to the point of sale. This will mean that UK supply VAT, rather than import VAT, will be due on these consignments. The new arrangements will also involve the abolition of Low Value Consignment Relief, which relieves import VAT on consignments of goods valued at £15 or less. Online marketplaces (OMPs), where they are involved in facilitating the sale, will be responsible for collecting and accounting for the VAT. For goods sent from overseas and sold directly to UK consumers without OMP involvement, the overseas seller will be required to register and account for the VAT to HMRC. Business to business sales not exceeding £135 in value will also be subject to the new rules. However, where the business customer is VAT registered in the UK and provides its valid VAT registration number to the seller, the VAT will be accounted for by the customer by means of a reverse charge. The changes will not apply to consignments of goods containing excise goods or to non- commercial transactions between private individuals. Existing rules will continue to apply for these transactions. In addition, for sales of goods by overseas sellers, where the goods are already in the UK at the point of sale, we will move the responsibility for accounting for VAT from the overseas seller to the OMP that facilitates the sale. Overseas sellers will remain responsible for accounting for the VAT on goods already in the UK and sold directly to UK consumers without OMP involvement. Although these arrangements will mean that for many consignments not exceeding £135 in value there will no longer be any VAT to collect at the border, customs declarations will still be required for non-fiscal purposes. However, in recognition of the changed role of the customs declaration for affected consignments, a number of facilitations, including the use of reduced data sets and bulk declarations will be available For imports of goods by UK VAT registered businesses which are not covered by the provisions in this guidance note, there will also be changes from 1 January 2021. Businesses will be able to use postponed VAT accounting to account for import VAT on their VAT return for goods imported from anywhere in the world. This means the business will be able to declare and recover import VAT on the same VAT return, rather than having to pay it upfront and recover it later, subject to normal VAT recovery rules. There are 2 strands to the measure, which will change the way VAT is collected on sales of goods in the following circumstances: Goods sold to UK customers where the goods are located outside the UK at the point of sale and the supply involves the later importation of the goods into the UK. Goods sold to UK customers where the goods are in the UK at the point of sale, sold by an overseas seller and where an OMP facilitates the sale. More info here IF YOU REQUIRE ANY HELP OR ADVICE OUR NOMINATED VAT PARTNER FISCAL SOLUTIONS ARE HERE TO LEND A HAND. INTRO Fiscal Solutions provide specialist VAT support to businesses trading globally. We can help you ensure that you are up-to-date with the latest and relevant VAT rules and requirements. ABOUT FISCAL SOLUTIONS Fiscal Solutions offer a comprehensive VAT service to all those looking to do business anywhere in the world. Our specialist team collaborates to provide the highest calibre advice for your business. Being based under one roof means our team of multi-lingual experts can act as a single point of contact for all our clients, working collaboratively to solve any VAT issues that may arise. We help you simplify today’s complexities, address tomorrow’s challenges, and take fear out of the equation. No matter what the task or the country, Fiscal Solutions can help you solve your business VAT needs. Get in touch today by emailing: VAT2021@sekologistics.com FREQUENTLY ASKED QUESTIONS WHAT IS SEKO DOING TO HELP ITS CUSTOMERS MANAGE THE IMPACT OF BREXIT ON THEIR SUPPLY CHAINS? WHAT IS THE IMPACT OF BREXIT ON BORDERS? WHAT IS THE TRANSITION PERIOD ONCE THE UK LEAVES THE EU? WHAT SHOULD WE BE DOING TO PREPARE FOR BREXIT? WILL MY SHIPMENTS BE DELAYED? CUSTOMS, EXCISE & VAT CHANGES TARIFF CHANGES IMPORTING FROM THE EU EXPORTING TO THE EU WHAT HAPPENS AT THE END OF THE TRANSITION PERIOD? WHAT HAPPENS AT THE END OF THE TRANSITION PERIOD? WHAT WILL HAPPEN IF A DEAL IS AGREED? WILL I NEED FISCAL REPRESENTATION? WHEN CAN MY HAULIER PICK UP MY GOODS TO EXPORT? I DO NOT CURRENTLY TRADE WITH EUROPE; WILL I NEED TO PREPARE FOR BREXIT? IF I AM NOT SELLING ON DDP TERMS WILL THE BUYER CLEAR THE GOODS INTO THE EU? WILL THERE BE DELAYS EXPORTING MY GOODS? WHAT IS POSTPONED VAT ACCOUNTING? WILL I HAVE TO PAY TAX ON GOODS TO THE EU? WHAT DOES CUSTOMS ORIGIN OF MANUFACTURE MEAN? WHAT IS THE IMPORT ONE-STOP-SHOP (IOSS)? 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