From 1 January 2021, engaging in business with Europe has changed and there are new rules to follow on exports, imports, tariffs, data and hiring. The Brexit transition webpage on the Government website contains more information on these changes and what businesses need to do https://www.gov.uk/transition.
From 1st January 2021, any business in Great Britain will require an EORI (Economic Operators Registration and Identification) number that starts with ‘GB’ to import and export goods to/from the EU. The EORI number is a unique code used to track and register customs information. For businesses in Northern Ireland, the situation is more complex and an EORI number starting with ‘XI’ is required to import/export goods to non-EU countries including mainland UK and therefore some businesses may require multiple EORI numbers.
You can apply for an EORI number here Get an EORI number It can take up to a week to process so the sooner you make the application the better.
Full details, including a step-by-step process on importing from/exporting to the EU can be found by clicking this link Business tax: Import, export and customs for businesses.
If you do import from/export to the EU, you may need to make some changes to your current EVision software. Microsoft have published information on the Brexit changes outlining what has been added to the software Brexit Impact on Business Central – United Kingdom leaving the European Union and these changes are outlined below:
New fields of EORI Number and Supplementary VAT Registration No. added to the Company Information Page:
The EORI Number has also been added to the Invoicing tab of both the Customer and Vendor card pages:
These fields can be added to the relevant reports however this will require changes to the reports as these fields have not been added to any standard reports.
If you are using Business Central online, these fields will already be available, if using an On-Premise version then please contact us to arrange an update.
Postponed VAT Accounting
One of the changes coming into effect on 1st January 2021 is the introduction of Postponed VAT Accounting. This will affect you if you are a VAT registered business and you import goods into the UK. Under postponed VAT accounting, you declare and recover VAT on the same VAT return. This is beneficial as it means you don’t have to pay the VAT upfront and recover it later. Normal VAT rules remain in place in terms of what can be reclaimed.
You can use postponed VAT accounting if your business is VAT registered and you import goods into Great Britain from anywhere outside the UK or into Northern Ireland from outside the UK and EU. There are no changes to the VAT treatment of goods moved between NI and the EU or the way in which VAT is accounted for. VAT becomes payable on imports coming into the UK from anywhere in the world if they are over £135 and this now includes imports from the EU. The postponed VAT accounting system aims to help cashflow and the way it works is very similar to the reverse charge mechanism used for EU trade prior to Brexit.
Full details on the postponed VAT accounting system and how to update the VAT Return can be found on the Government website Complete your VAT Return to account for import VAT.
If you require any further information, please contact a member of our team.