HMRC letters to VAT-registered businesses trading with the EU and/or the rest of the world highlighting actions they need to take before the end of the transition period.
Source HMRC
Source EY:
HMRC has written to VAT-registered businesses trading with the EU and/or the rest of the world. It explains the actions to take to prepare for changes to customs arrangements after the transition period, including:
- Getting a UK Economic Operator Registration and Identification (EORI) number
- Customs facilitation
The letter confirms that from 1 February the UK will no longer be a member of the EU and will enter an implementation period until 31 December 2020. During this time there will be no changes to the terms for trading with the EU or the rest of the world, unless the rules change for the whole of the EU. This means EU rules for customs, VAT and excise will continue to apply to the movement of goods and trade for this limited time.
The letter also explains that registration and use of Transitional Simplified Procedures (TSP) for imports from the EU is currently suspended. Businesses will not need to use TSP between February and December 2020. Those that have already applied for this service are advised to retain their paperwork. In addition, postponed VAT Accounting will not be available during the implementation period.
