Businesses must prepare for external border with EU

HMRC has sent letters to VAT-registered businesses in Great Britain that trade with the EU and the rest of the world highlighting actions they need to take to continue trading with the EU from 1 January 2021.

The letter explains after the UK leaves the EU’s single market and customs union when the transition period ends on 31 December 2020 the UK will operate a full external border with the EU. So from 1 January businesses will need to submit declarations when importing and exporting goods that are categorised as ‘controlled’. Import processes and customs declarations for non-controlled goods can be delayed until 30 June 2021.

In preparation for this VAT-registered businesses should:

• make sure they have a UK economic operator registration and identification (EORI) number;
• decide how they will make customs declarations;
• check if their imported goods are eligible for staged import controls;
• check if import VAT is...