The promise of zero tariff and zero quota trade is exactly what businesses were hoping for.
But has the UK’s deal with the EU delivered on the promise of frictionless trade with our European neighbours and are there zero import taxes? The short answer is no, as businesses are beginning to discover.
Confusion and frustration over import duties, VAT and tariffs is causing very real problems for businesses and is only likely to get worse when, in the summer, the EU introduce new rules on the supply of goods from the UK on all transactions over the value of £135.
If they have not already done so, businesses need to understand the new regime on importing and exporting goods to and from the EU. This will include accounting for VAT, determining who is responsible for VAT, EORI numbers, customs duties, the origin of goods, and the complexities of trade with Northern Ireland.
From July, businesses also have to comply with new EU rules that will apply to all trade over the value of £135 into the UK from the EU. The rules are designed to combat VAT fraud on low-value transactions and will add considerable complexity to an already complicated trading relationship.
Kreston Reeves has a dedicated VAT and duties team that is on hand to help businesses as they prepare to trade across Europe and that are already trading across the EU and perhaps experiencing problems.
The starting point for businesses is to take advantage of our post-Brexit health check designed to help Gatwick Diamond members understand and take advantage of the new regulations.
For support, guidance,or a Brexit health check, we’re here to help.
Rupert Moyle, partner and head of VAT and duty,
0330 124 13990