For a step by step guide to exporting goods to the EU please click here: https://www.gov.uk/export-goods

  • Goods leaving the UK and arriving in the EU are now classed as exports rather than dispatches and can be zero rated
  • Evidence of the goods leaving the UK will be required
  • EU businesses receiving goods from the UK will treat them in the same way as goods arriving from non EU countries
    • import VAT and customs duties will be payable when the goods arrive in the EU
  • Prior to 31/12/2020 UK businesses with low value sales (up to £70,000 per annum) to EU customers could benefit from the distance selling thresholds, thereby removing the need to register for VAT in the EU member state – now abolished
    • Although the distance selling threshold have now been removed these sales are now classed as zero rated exports
  • UK businesses will no longer be required to complete an EC Sales List
    • NI businesses will still need to prepare and submit these
  • Where a UK business / customs agent is named as the importer of record on the export declarations then they will have the responsibility to register for VAT in that country, pay the import VAT and charge the country’s VAT on the supply to the customer
    • If the customer is importer of record they then become liable for the import VAT and there is no need for the UK supplier to register for VAT in that country
    • Many EU countries require the importer of record to be established in the EU so in practical terms it may not be possible for a UK business to act as importer of record

Click here to go back to a roundup of what you need to know about trading with the EU.