As the end of the Brexit transition period nears and the UK prepares to leave the EU’s customs union and single market, tax professionals have been reminded of a multitude of crucial issues they must consider before 1st January 2021.
We recently took part in an event hosted by Kevin Roger, Indirect Tax Consultant at 4eyes, who spoke about some of the most recent regulations to be confirmed. We’ve compiled this handy guide to five of the top talking points:
1) UK duty deferment
HMRC has confirmed that non-UK businesses will be ineligible for UK duty deferment from 1st January 2021. This would mean current non-established taxable persons would lose their deferment accounts.
2) Intrastat declarations
Many companies – including those currently registered as an Intrastat organisation and those that will exceed the exemption threshold in the coming year – must submit Intrastat declarations in 2021. These will include details of all imports into Great Britain from Europe, those made into Northern Ireland from Europe and imports from Northern Ireland to Europe. The Intrastat threshold is £1.5 million for European imports and/or £250,000 for European exports.
3) Preferential origin
While the UK’s GSP scheme is set to mirror the EU’s, the EU will not necessarily rule that goods passing through the UK are eligible for GSP. Various authorities in Europe currently have differences in how they believe non-manipulation (cases in which goods rest in a UK customs setting for a period of time) should be regulated.
4) The importance of proof of origin
If goods meet the UK GSP rules of origin requirements, businesses will be able to claim a GSP rate of import duty. However, this will be conditional on supplying valid proof of origin, which must be either a GSP form or an origin declaration.
5) Breakdown in AEO approvals
From 1st January 2021, the EU will not recognise UK-issued Authorised Economic Operator approvals providing there is no deal agreed before this date. Businesses must prepare for this eventuality, although negotiations are continuing.
We recently told how businesses must act now if they are to upgrade their systems in time to comply with new post-Brexit tax requirements from 1st January 2021.
Get in touch today if your organisation has yet to fully protect itself against the threat of non-compliance.
Bonus: Be Brexit Ready Webinar
We recently hosted a webinar for our clients and guests to summarise the impact Brexit is likely to have on tax determination within Oracle ERP, as well as the steps businesses – regardless of the systems they use – need to take in order to be ready for 1st January 2021.
Given the tight timescales for businesses across the world to prepare for the changes – and indeed the criticality – we’ve decided to make the presentation slide deck available for all (see below). It goes without saying that if you need advice on getting ready for the end of the transition period, don’t hesitate to contact us.