Customs Modernisation: Call for Evidence on Future Trade and Digital Practices

• Strategic redesign of UK customs and trade processes
  HMRC and HM Treasury have launched a Call for Evidence to assess how evolving global trade and digitalisation should reshape the UK customs regime. The consultation focuses on three pillars:
  • the future of international trade flows and supply chains,
  • the use and standardisation of customs data,
  • and the suitability of existing customs authorisations in a modern environment. [vatupdate.com]
• Acceleration of digitalisation and data-driven compliance
  The initiative is aligned with broader UK policy to digitalise customs and VAT-related processes, including:
  • expansion of electronic trade documentation,
  • participation in digital trade corridor programmes,
  • and testing of AI to enable real-time border controls.
    This digital shift is closely connected to the UK’s e‑invoicing roadmap (Peppol-based, mandatory by 2029), signalling convergence between customs, VAT reporting, and transactional data flows. [vatupdate.com]
• Implications for VAT, import processes and business models
  While not directly amending VAT rules, the consultation highlights a move toward:
  • greater alignment between customs and VAT data,
  • real-time or near real-time reporting environments,
  • and potential redesign of authorisations impacting import VAT processes (e.g., intermediaries, declarations, simplifications).
    This could significantly affect postponed import VAT accounting (PIVA), customs valuation and compliance models, especially for multinational supply chains interacting with the UK.

Why this matters for your role (regional tax / EU perspective)

• Signals continued divergence from EU customs/VAT frameworks, requiring separate UK compliance design.
• Reinforces a broader trend you’re tracking (e‑invoicing, data models, SAF‑T-like reporting).
• Likely to impact ERP/reporting models and customs‑VAT data reconciliation, especially for cross-border flows into the UK.

Key deadline

• Consultation closes: 15 September 2026 [vatupdate.com]