Importers and Exporters Of Goods Need To Be Aware Of Changes on 1 January 2022
Released On 10th Dec 2021
The past year has seen some significant changes for importers and exporters of goods as a result of Brexit. There will be some additional changes on 1 January 2022 as some of the transitional arrangements come to an end. These include:
End of deferred important declarations
During 2021 it was usually possible to delay making customs declarations for goods brought into Great Britain (i.e. England, Scotland, and Wales) from the EU by up to 175 days without authorisation from HMRC. Different rules apply to Northern Ireland.
This relaxation will end on 31 December 2021 and, unless the importer is authorised for a "Simplified Procedure", import declarations will have to be made at the time goods are imported into Great Britain. Getting authorised for Simplified Procedures is somewhat involved, and HMRC is warning that Authorisations may take up to 60 days.
Even if authorised the importer will have to submit detailed supplementary declarations and pay soon after, so this regime may not suite everyone.
There are other ways to defer the payment of import VAT and duty. A Duty Deferment Account allows import VAT and duty to be paid on the 14th day of the month following importation. This allows the VAT and duty payments to be deferred by up to six weeks. Again HMRC approval has to be obtained and in some cases a financial guarantee is required to cover potential customs debts.
For VAT registered businesses the Postponed Import VAT Accounting system allows import VAT to be paid and simultaneously reclaimed (subject to the normal VAT reclaim rules) through the VAT return. This has significant cash flow benefits. We would recommend VAT registered businesses who currently pay import VAT at importation and reclaim it often months later through their VAT return to consider this option.
