Brexit checklist for Distance Sellers

With so many decisions still to be made in Parliament, Brexit is making it hard for e-commerce businesses to plan for the future.

But to safeguard your supply chains, our experts have compiled the following checklists to guide Distance Sellers through the uncertainty.

Carrying out a review now will ensure that you continue to trade with confidence no matter what happens.

 Business model

Have you reviewed your business model with regards to the supply of goods to private individuals in the EU? To decide on the most appropriate structure for the future full consideration should be given to the options available and their implications.

 Fiscal representation

Have you reviewed the countries where VAT registrations will be retained where Fiscal Representation is required? In particular have you considered where Tax Authorities are insisting on action prior to a hard Brexit?

 Warehouse

Have you considered setting up a warehouse within the EU so that you can continue to distance sell under the current VAT regime?

 EORI

Have you applied for an EORI number in another Member State so that it can be used for goods to be imported into the EU post a hard Brexit?  Have you linked this to other VAT numbers in countries where goods will be imported with you acting as importer of record?

 Customs declarations into EU

Have you considered the customs declarations that will be required if you act as importer of record of goods into the EU? Are you going to be importing into a single country and then delivering the goods from there? Or will you be importing into every country where you have customers?  The customs declarations are an issue that should be discussed with your logistics provider.

 Customs declarations from UK

Have you considered that customs declarations will be required for the export of the goods from the UK? This is an issue that should be discussed with your logistics provider.

 Customer experience

Have you considered how the various options that are available for selling goods to EU customers post a hard Brexit will impact your customer experience?

 Payment of import VAT

Have you considered the way in which import VAT is collected in the Member State where goods are being imported and whether there are any opportunities to defer the payment or postpone it to the VAT return?

 Customs Duty

Have you considered the impact of customs duty on your costs if the goods are to be delivered to customers from the UK?

 Business model

Have you reviewed your business model with regards to the supply of goods to private individuals in the UK? To decide on the most appropriate structure for the future full consideration should be given to the options available and their implications.

 EORI

Have you identified the need to apply for a UK EORI number? Existing EORIs from other Member States can only be used for a temporary period which will be confirmed by HMRC in due course.

 Customs declarations into UK

Have you considered the customs declarations that will be required if you act as importer of record of goods into the UK? This is an issue that should be discussed with your logistics provider

 Customs declarations from EU

Have you considered that customs declarations will be required for the export of the goods from the EU? This is an issue that should be discussed with your logistics provider.

 Customer experience

Have you considered how the various options that are available for selling goods to UK customers post a hard Brexit will impact your customer experience?

 Parcels below £135

Have you considered the impact of the new scheme that is being introduced by HMRC for goods sent in parcels where the value is below £135? To make use of this scheme either the seller needs to be registered with HMRC or the import VAT to be paid by the parcel company.

 Payment of import VAT

Are you aware that HMRC will change the way that import VAT is paid when goods arrive in the UK so that it is postponed to the VAT return?

 Customs Duty

Have you considered the impact of customs duty if the goods are to be delivered to customers from the UK?

 Duty deferment

Are you aware that the facility to defer customs duty will be available to EU businesses that are not established in the UK at some point in the future? Currently this is not available but HMRC have indicated that they will make changes to the system in the event of a hard Brexit.

 Low value consignment relief (LVCR)

Are you aware that LVCR, which applies to low value imports below £15 from the majority of countries outside the EU, will be abolished for all such imports post a hard Brexit?

How can Accordance help?

Our experts are always on hand to offer clarity and can offer bespoke Brexit reviews to suit your needs. Get in touch now to find out more.

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