Your company will probably have received correspondence from HMRC about the changes that will be taking place if you trade with the EU when the United Kingdom (UK) leaves the EU, including the Customs Union, at 11pm (UK time) on 29 March 2019.
The government has reached agreement with the EU on the majority of withdrawal issues, including the terms of an implementation period. Full agreement on all aspects will mean trading with the EU during the implementation period would broadly stay the same from the end of March 2019 until 31 December 2020.
The government has reached agreement with the EU on the majority of withdrawal issues, including the terms of an implementation period. Full agreement on all aspects will mean trading with the EU during the implementation period would broadly stay the same from the end of March 2019 until 31 December 2020.
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Extract from HMRC Correspondence
"The government is also focused on securing a future partnership with the EU following the end of the implementation period in December 2020. The recent White Paper ‘The future relationship between the United Kingdom and EU’ set out details of this.
However, the government continues to prepare for all scenarios, including the unlikely outcome that the UK leaves the EU at the end of March 2019 without a deal.
In the event of No Deal, the government is committed to prioritising stability for businesses. We will continue to work closely with industry to ensure that interventions in a no deal scenario are conducted in a way which minimises delays and additional burdens for legitimate trade, while robustly ensuring compliance. The approach of continuity does not mean that everything will stay the same, but the priority is maximising stability at the point of departure.
What leaving the EU without a deal on 29 March 2019 would mean:
The information from your VAT registration shows that:
If we leave the EU without a deal in March 2019, there would be immediate changes to the way UK businesses trade with the EU that impact on your business. This includes:
What you should do to get ready
While no changes will be made before 29 March 2019, you may wish to use the coming months to understand more about what leaving the EU without a deal would mean for you.
The steps and obligations you 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.
You can find information on how to trade with countries outside of the EU on GOV.UK. It covers customs procedures, excise rules and VAT when importing or exporting goods outside the EU.
We’ve engaged with you already on “no deal” preparations already underway, including the publication of a series of technical notices and the partnership pack HMRC is developing. We also flagged we would be writing to VAT-registered businesses in the UK that currently only trade with the EU."
However, the government continues to prepare for all scenarios, including the unlikely outcome that the UK leaves the EU at the end of March 2019 without a deal.
In the event of No Deal, the government is committed to prioritising stability for businesses. We will continue to work closely with industry to ensure that interventions in a no deal scenario are conducted in a way which minimises delays and additional burdens for legitimate trade, while robustly ensuring compliance. The approach of continuity does not mean that everything will stay the same, but the priority is maximising stability at the point of departure.
What leaving the EU without a deal on 29 March 2019 would mean:
The information from your VAT registration shows that:
- you’re a trader based in the UK currently importing and/or exporting goods within the EU
- you do not currently trade with non-EU countries.
If we leave the EU without a deal in March 2019, there would be immediate changes to the way UK businesses trade with the EU that impact on your 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 you, in the same way that they do for goods received from outside of the EU.
What you should do to get ready
While no changes will be made before 29 March 2019, you may wish to use the coming months to understand more about what leaving the EU without a deal would mean for you.
The steps and obligations you 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.
You can find information on how to trade with countries outside of the EU on GOV.UK. It covers customs procedures, excise rules and VAT when importing or exporting goods outside the EU.
- Importing from non-EU countries: www.gov.uk/importoutsideEU
- Exporting goods outside the EU: www.gov.uk/exportoutsideEU The Government is confident it will reach a mutually beneficial deal with the EU as it negotiates the UK’s exit. As a responsible Government, it is also preparing for all scenarios, including the unlikely event that we leave the EU in March 2019 without agreeing a deal.
We’ve engaged with you already on “no deal” preparations already underway, including the publication of a series of technical notices and the partnership pack HMRC is developing. We also flagged we would be writing to VAT-registered businesses in the UK that currently only trade with the EU."