Brexit and Trading with the EU
It is looking more and more likely that the UK will leave the EU without a deal on October 31 2019. VAT-registered companies who want to continue trading with companies in the EU will need to prepare for a no-deal Brexit.
UK businesses will have to apply customs, excise and VAT processes to goods sold into the EU. These are the same rules that already apply for goods and services traded outside of the EU).
Trading partners in the EU will have to apply customs, excise and VAT processes to trade they carry out with you, in the same way that they do for goods and services traded from outside of the EU.
HMRC is helping businesses get ready for Brexit by automatically issuing them with a UK EORI (Economic Operator Registration and Identification) number. They have written to more than 88,000 VAT-registered companies to let them know their UK EORI number. Businesses will not be able to move goods in and out of the UK without one.
If your business is not VAT-registered, you will still need to apply now for a UK EORI. HMRC cannot give you this automatically. You can check the next steps you need to take to ensure that your business is ready for Brexit and can continue trading with the EU using HMRC’s trader checklist.
If you are concerned about any of the issues raised above, speak to our Business Services team or your usual advisor on 0161 476 9000, or contact us here.
