HMRC’s letter sets out the changes to customs, excise and VAT in the event of a ‘no deal’ Brexit, which would require such traders to 
complete customs declarations for the first time.
On 29 March 2019 should the UK leave the EU without a deal, traders identified from their VAT registration as:
- based in the UK currently importing and/or exporting goods within the EU
- not currently trading with non-EU countries
are affected as there will be immediate changes to the way UK businesses trade with the EU that impacts on business. This includes:
- UK businesses having to apply customs, excise and VAT procedures to goods traded with the EU, in the same way that already applies for goods traded outside of the EU
- Trading partners in the EU having to apply customs, excise and VAT procedures to goods they receive from UK traders, in the same way that they do for goods received from outside of the EU.
HMRC advises that any business which currently trades only with the EU needs to start completing customs declarations from March 2019 and customs checks will apply to their business for the first time.
While no changes will be made before 29 March 2019, HMRC suggests EU trading business owners may wish to use the coming months to understand more about what leaving the EU without a deal would mean for their business. The steps and obligations businesses may need to take to continue to trade with the EU if the UK leaves without a deal are broadly the same as those that apply to businesses that trade with
countries outside of the EU.
Information can be found on how to trade with countries outside of the EU on GOV.UK. The advice covers customs procedures, excise rules and VAT when importing or exporting goods outside the EU.
HMRC goes on to suggest that business owners that are members of a trade body, may find that those organisations might have useful information on their websites. VAT advisers, such as the team here at Bedrock, customs agents and freight forwarders also have services to help businesses follow customs rules.
HMRC’s letter is for advice and guidance only, businesses have been told that they don’t need to get in touch with HMRC, as it is part of the government’s ongoing programme of planning for all possible outcomes. Jim Harra Deputy Chief Executive HMRC who is the signatory to the letter says “We fully expect to negotiate a successful outcome with the EU, which would mean you do not have to make significant changes to the way that your business operates.”
Further updates and information will be available on GOV.UK before and after 29 March 2019 or alternatively get in touch with us today to discuss how to get your VAT affairs in order well before next March.
