Trading arrangements from 1 January 2021

HMRC has written to VAT-registered businesses in Great Britain that trade with the EU and/or the rest of the world, highlighting actions they need to take to continue trading with the EU from 1 January 2021.

The UK will leave the EU’s single market and customs union when the Brexit transition period ends on 31 December 2020. While the import processes and customs declarations for non-controlled goods can be delayed until 30 June 2021, the UK will operate a full external border with the EU when importing and exporting goods that are categorised as ‘controlled’ from the beginning of 2021.

In preparation for this, HMRC has sent letters to VAT-registered businesses explaining what they need to do to prepare for new processes for moving goods between GB and the EU from 1 January 2021, including:

• making sure they have a UK economic operator registration and identification (EORI) number;
• deciding how they will make customs declarations;
• checking if their imported goods are eligible for staged import controls;
• checking if import VAT is due at the border;
• deciding how they will account for import VAT when they make a customs declaration;
• checking the UK global tariff list;
• signing up for the new Trader Support Service, if they move goods between GB and Northern Ireland (NI), or bring goods into NI from outside the UK.