Many companies in Ireland and throughout the rest of Europe have stopped trading with the UK since Brexit due to new Customs Regulations and lack of free trade. This article will explain how to sell goods to the UK post Brexit
Changes to Trade Post Brexit
- Goods of all values entering the UK will be subject to import VAT and potential Duty charges
- Companies trading with the UK will need to apply for an EORI number. An EORI (Economic Operators Registration and Identification Number) can be applied for by anyone and takes only a few minutes – Click here to apply for an EORI number
- UK companies wishing to import and pay Import charges can register for a DAN account, FAS account or a CDS cash account. If you do not have these accounts and want to import you can contact a Customs Agent who will pay this on your behalf. It is also possible to postpone VAT accounting.
- Goods that are over £135 must have customs paperwork clearing their export from original country and importing into the UK
- For goods sold to consumers under £135 the seller will be responsible for paying VAT and must be VAT registered in the UK
- For goods under £135 sold to UK VAT registered businesses the buyer must pay the VAT through VAT return to HMRC
Postponed VAT Accounting
Postponed VAT accounting allows you to account for the import VAT on your VAT return. This can greatly benefit your cash flow as you will not need to pay the Import VAT up front. When submitting the declaration your Customs Agent can select the option for Postponed VAT accounting and the VAT will be recorded against your EORI number.
How To Trade With the UK Post Brexit
Although it may seem daunting and complicated to trade with the UK, once you have your EORI number and a reliable Customs Clearance Agent the process is actually very simple. Your Customs Agent will require a copy of the Commercial Invoice, shipping details, and your preferred method of payment.
With this information the Customs Broker can prepare the Export and Import Documents that are required for the delivery and ensure that all VAT and Duty is accounted for.
Free Trade Duty Exemption
Although the UK has now left Europe, it is still part of a Free Trade Agreement with Ireland. This means that goods that are manufactured in the UK or Ireland will be exempt from Duty when traded between the two countries. This is a huge benefit for companies that are trading across the water as costs remain low.
Customs Documents Required to Import Goods into The UK
All goods being imported into the UK will need to have a UK Import SAD (Single Administrative Document) and should be accompanied by the Export SAD of the country of export.
Goods travelling by freight from Ireland will also need a PBN (Pre Boarding Notification) to board the ferry in Ireland. Goods that will travel through ports using the GVMS system will also need a GMR Number . Usually the haulier will deal with this paperwork themselves but you can also appoint a Customs Agent to handle this for you.
Contact a Customs Clearance Agent
If you have any questions about how to restart trade with the UK you can Contact Us on +44 2038 307 780 (UK) or +353 91 429 737 (Ireland).
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