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Changes from 1 January 2021 for Business Customers in the EU

From 1 January 2021, the transition period for the Uk leaving the EU will have ended, and any goods supplied by Blue Aran to the EU will be treated as EXPORTS from the UK, and IMPORTS into the EU. Where a free trade deal has been agreed between the UK and the EU, continued trade will be relatively easy, but with a few changes:

  1. As the seller we will have to submit export declarations to UK Revenue & Customs authorities , either directly, or via the shipping company transporting the goods.
  2. As the buyer, you will normally have to make import declarations to your government/tax authority. This is normally something that the shipping company will take care of on your behalf, but they will make an administrative charge for this. Most countries in the EU require you to have an EORI Number to import goods into the EU from outside the EU. The fees for courier shipments can be anything from €5-€20 depending on the courier and complexity of the shipment.
  3. We will issue a COMMERCIAL INVOICE, rather than a standard VAT INVOICE. The Commercial Invoice will include additional information for each product, the HS Commodity Code, and the country of Origin, this additional information is required for import and export declarations.
  4. Up until 31st December 2020, sales between VAT registered businesses in the UK and other European countries have been operating under the Reverse Charge on EU VAT system, which allows Intra-EU transaction to be zero rated, and the business only has to account for the VAT due in the VAT accounting declarations, no VAT has to be paid at the time of sale. From 1st January 2020, this system will no longer apply. VAT at the local rate in your country will become due, and it may be necessary to pay the VAT to the shipping company before delivery can take place. Depending on your circumstances and your country, it may be possible to defer VAT and pay it late. If you are not familiar with these processes, you may need to consult your accountant, or an import/export specialist to assist you. In most cases this is a straight forward procedure.
  5. Due to the free trade deal agreed between the UK and the EU, there will be no tariffs or duties to pay on products of preferential origin (those manufactured in the UK or EU). Any goods we supply manufactured outside the UK or EU, such as goods made in China, Thailand, USA or elsewhere in the world, will attract duties on certain products, these are typically 3-5%. If this affects products you buy, we invite you to discuss with us ways in which we can mitigate these extra costs.
  6. Admininstrative fees. Every shipment from the UK to EU will be subject to processing fees for customs. Even if the order value is small, there is a administrative fee payable for processing the VAT/Duty. This fee varies with courier and country. DPD in many western countries is charging a fee of around €5-€15 for most consignments, in some countries this fee may be higher, but we do not have full details yet. DHL is charging approximately €15-€20 for most countries, except Germany, where the fee is approximately €6 for processing through their main hub. Fedex fees are typically around €16 - for small orders the administrative fees will add a lot to the overall cost, so we suggest for our business customers to focus on larger orders only. Most pallet shipments are charged at around €50-€60 for western europe, the haulier doing the customs declaration will charge you this at your end before they deliver the goods.
  7. Import VAT. You will normally be required to pay import VAT at the normal rate for your country, this has to be paid to the courier before goods can cross the border. The courier will issue you with a bill which you can use to reclaim VAT, and normally also make a declaration to the tax authorities that you have imported goods liable for VAT.