If, after Brexit, an entrepreneur does not want to pay VAT at customs on goods purchased in the UK, he will need an Article 23 OB from 1 January 2021.
That is the subject of a letter sent by the tax authorities in September to entrepreneurs who are eligible for a permit and have not yet applied for it.
This letter explains how an entrepreneur applies for an ‘Article 23 permit’. In that case, he does not have to pay VAT to Customs, but declares the VAT to be paid on his import in one go in his normal VAT declaration. Without a permit under Article 23, the entrepreneur must declare and pay VAT to Customs every time he imports goods.
A transition period will apply from January 31, 2020, after the UK has left the EU on January 31. This transition period ends on December 31, 2020. The entrepreneur can use the license for the import of goods from the UK after the end of the transition period, ie from 1 January 2021.
Source
- Taxlive.nl (in Dutch)
- Avalara
