Brexit: Goods – Imports Part 1 & 2
The first part (1) deals with the movement of goods post Brexit, specifically goods coming into the UK (buying goods from the EU), like the article before it, the way of dealing with VAT and import duty will be new to many businesses who have previously only dealt with EU suppliers and used the simplifications such as reverse charge and triangulation. It is important to understand that if you buy goods from EU, then it will change from January 2021 and is not dependent upon a deal being agreed.
Part 2 looks at import duty, import documentation and commodity codes. If a deal is agreed then the duty rates applicable to goods entering the UK from the EU (and vice versa) may change, HMRC have published duty rates which will be applicable from January 2021 and so businesses need to, at least, review the additional costs that may be involved in buying goods from the EU or selling to the EU. Import duty is not recoverable and becomes a cost component of the margins, so a business should look at what effect import duty will have on margins/profitability in the case there is a no deal outcome.
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Jason Croke – VAT Director
Email – Jason.Croke@rayneressex.com
Call – 0207 3882641