FAQ Brexit - Sales of goods in the UK after 1 January 2021

The UK officially exited the EU on 31 January 2020. In practice, a transition period has been decided from 1 February 2020 to 31 December 2020. During this period, nothing will change in terms of VAT or customs.

However, from 1 January 2021, the United Kingdom will effectively have to be treated as a non-EU country.

The EU and the UK have finally agreed on a free trade agreement, which provides for a number of measures to facilitate trade as of January 1, 2021.

Here are the main customs measures contained in this free trade agreement:

• the movement of goods between the UK and the EU will be subject to customs controls. However, trade will be duty and quota free, provided that companies comply with the rules of origin ;
• There will be no mutual recognition of European and British certifications. Therefore, to market goods in the EU and the UK, businesses will be required two separate certifications ;
• British agri-food goods will have to carry health certificates and undergo sanitary and phytosanitary controls at the border inspection posts of the member states.

WARNING: the signing of this FTA does not change the fact that the UK will effectively have to be treated as a non-EU country for customs and VAT purposes.

For movement of goods between the EU and the UK:

• EU countries will no longer impose Intrastat declarations;
• The UK will continue to impose Intrastat declarations.

UK border controls will gradually be re-established and for each movement of goods between the EU and the UK, it will be necessary to file an export declaration with the customs in the country of departure and an import declaration with UK customs.

In order to import goods into the UK, you will need to appoint a UK customs representative and have a UK EORI number.

Unless a free trade agreement providing for exemption from customs duties is concluded, the importation of goods into the UK from the EU will be subject to the payment of customs duties

No, you will not be able to use your European EORI number to import goods into the UK after 1 January 2021.

B2B sales of goods shipped from the EU to the UK will no longer be subject to the Distance Selling regime.

B2B sales of goods shipped from the EU to the UK will no longer be subject to the intraCommunity supply/acquisition scheme.

Therefore, all sales of goods shipped from the EU to the UK (BtoC AND BtoB) will be subject to the import/export regime.

The importation of goods into the UK from the EU will in principle give rise to the payment of import VAT to customs. However, it will be possible to apply for reverse charge of import VAT in the UK on request.

Your UK VAT number will remain unchanged after 1 January 2021.

The UK should not require EU businesses to appoint a tax representative.

However, the services of a tax agent will still be essential to complete all VAT formalities in the UK (obtaining a VAT number, VAT reporting via the specific platform “Making Tax Digital”, filing and monitoring refund applications, etc.) and to ensure compliance with UK tax and customs regulations.