This week’s bulletin covers a round-up of the latest Brexit developments as well as details of the new trade agreement reached in principle between the UK and Australia. We also look at the additional charges facing online shoppers in Ireland from 1 July, enhancements to Revenue’s import declaration system as well as responses from HMRC in relation to VAT queries raised by members on trading with the EU.

Brexit weekly round-up

• The European Commission today (17 June) received a request from the UK to extend to 30 September 2021 a grace period involving the movement of chilled meats from Great Britain to Northern Ireland.  The grace period is due to expire on 30 June 2021. The Commission said in a statement that it will assess this request.   
• In the context of the UK aligning itself with EU rules and standards on food production as a solution to reduce sanitary and phytosanitary checks required on goods entering Northern Ireland from Great Britain, Minister of State David Frost told the Northern Ireland Affairs Committee that this would cause problems for the UK in terms of agreeing future trade agreements.
• UK Prime Minister Boris Johnson Australia’s Prime Minister Scott Morrison announced a political agreement this week on the broad terms of a trade deal. The UK government has issued the text of the agreement in principle which says “Australia and the UK will commit to providing the most liberal possible treatment for goods of interest to both countries, while taking into account product sensitivities.”
• Figures from the Central Statistics Office (CS0) show that imports of goods into Ireland from Great Britain fell 20 percent year on year in April while goods exported to Britain from Ireland rose 42 percent. Imports of food and live animals were down while there were large increases in the export of chemicals, machinery and transport equipment.
• A preliminary agreement was reached this week by the European Council and Parliament on the EU’s €5 billion Brexit Fund. Ireland looks set to be in line to receive just over €1 billion from the special one-off emergency fund, which is the highest allocation. Funds are only allocated to those sectors directly affected by Brexit. Read the EU’s press release.

Ireland

Additional charges for online shoppers in Ireland from 1 July

With the VAT exemption for imported goods with a value of €22 or less set to end from Thursday, 1 July 2021, Revenue issued a reminder to online shoppers about the new VAT rules coming into effect for goods arriving in Ireland from non-European Union countries. The notice to consumers identifies how the changes may bring additional charges when buying goods online, where the non-EU established supplier does not account for the Irish VAT on behalf of the customer through the new Import One Stop Shop (IOSS).  Read more.

End of temporary ENS easement

Revenue confirmed the temporary easement for lodging Safety and Security (ENS) declaration for Roll-On, Roll-Off (RoRo) goods movements between Ireland and Great Britain will end with effect from 5pm on Wednesday, 23 June.

The ENS declaration provided challenges for some businesses concerned and so Revenue put a dedicated team in place to assistant and collaborate with the businesses concerned to address their difficulties in lodging ENS declarations, while also ensuring completion of necessary customs formalities.

Revenue confirmed in a press release that “While this ENS related easement is coming to an end, Revenue remains fully committed to working with businesses to address any specific challenges they face and in the context of facilitating the efficient flow of legitimate trade.”

Revenue officers are available at the main points of importation in Dublin Port, Rosslare Port and Dublin Airport. You can also contact the customs helpline on 01 7383685.

Enhancements and fixes to AIS

Revenue has set out in eCustoms notification 38/2021 a list of enhancements and bug fixes that were recently introduced to into its Automated Import System (AIS), the system used to lodge import customs declarations. Read the notification.

Transport costs included in customs value

Revenue has set out in eCustoms notification 39/2021 the circumstances transport costs incurred after arrival into the EU’s custom territory will not be included in the customs value if the cost is clearly distinguishable from the total charge.  Read the notification.

UK

EU exit – HMRC responses to queries

Last month, during a HMRC webinar hosted by the Ulster Society on VAT post EU exit, a query was raised the answer to which is provided below together with a further answer to a query recently raised by the Institute on behalf of members.

Q: For goods moving EU – NI – GB – are Irish export and UK import documents required?

A: The following below sets out when declarations are needed for goods moved EU-NI-GB.

https://www.gov.uk/guidance/moving-qualifying-goods-from-northern-ireland-to-the-rest-of-the-uk

Q: Where an ROI business (with no other connection to NI/UK) supplies services to a NI registered business based in NI, do they need to register for UK VAT as a Non-established-taxable-person which would be quite administratively burdensome?

A: It’s the below in Section 8 VATA 1994 that decides this. The services are regarded as made by the recipient. That is why the recipient can be forced to register for these purchases. The overseas supplier will never be registerable, as a result of a) below.

If the services were B2C, then the services would be supplied abroad, so no-one accounts for any VAT.

Due the final line below, highlighted, the breadth of services whereby the supplies by overseas businesses is accountable by a UK established recipient, is very broad. In the case of those services, the recipient must be VAT registered as well as established in the UK.

Legislation

8(1)  Where services are supplied by a person who belongs in a country other than the United Kingdom in circumstances in which this subsection applies, this Act has effect as if (instead of there being a supply of the services by that person)–

1. there were a supply of the services by the recipient in the United Kingdom in the course or furtherance of a business carried on by the recipient, and
2. that supply were a taxable supply.

8(2)  Subsection (1) above applies if–

1. the recipient is a relevant business person who belongs in the United Kingdom, and
2. the place of supply of the services is inside the United Kingdom,

and, where the supply of the services is one to which any paragraph of Part 1 or 2 of Schedule 4A applies, the recipient is registered under this Act.

In this scenario, the services received by the NI business must be added to its taxable turnover, which will be required to register for VAT if this results in the registration threshold being exceeded.

Need help with customs or VAT? UK grant system closes for applications on 30 June 2021

HMRC has issued a reminder that smaller businesses can apply for grants of up to £2,000 to help them adapt to new VAT and customs rules when trading with the EU.

The £20 million SME Brexit Support Fund is designed to enable traders to access practical support, including training for new customs, rules of origin and VAT processes.

Small and medium sized businesses that trade solely with the EU – and are therefore new to importing and exporting processes – are encouraged to apply for the grants.

To be eligible, businesses must import or export goods between GB and the EU or move goods between GB and Northern Ireland. The scheme will close on 30 June 2021 or earlier if all funding has been allocated.

Later Trader Support Service Bulletin

The 31^st edition of the weekly Trader Support Service (TSS) bulletin contains information about the following:

• New mandatory ‘Importer EORI’ field within the TSS Portal when submitting declarations
• Details on how to prepare for full frontier declarations which can be declared using TSS
• Details on the Movement Assistance Scheme which provides advice to businesses in obtaining export health certificates
• Details on the Digital Assistance Scheme which streamlines the certification and verification processes required for moving goods from Great Britain to Northern Ireland
• A reminder that supplementary declarations are due by 28 June for goods moved between 1 March and 30 April 2021.
• Enhancements to the TSS including the ability to copy item information between consignments for repeat declarations as well as importing item data from another supplementary declaration

HMRC webinars

HMRC has sent an update with regards the support available to help traders moving goods between the UK and EU.  We have reproduced HMRC’s note below.

“Dear customer,

If you move goods between the UK and countries in the EU, you need to follow new customs and tax rules.

Your business will be affected by the new rules if you:

• buy goods from an EU seller and bring them into the UK
• send goods you’ve sold to a buyer in an EU country
• haven’t exchanged money but need to move equipment that you use for your business, between the UK and the EU.

We understand this means a lot of changes are needed and recognise that the trading environment is particularly challenging for many businesses at the moment. That is why HMRC is offering to help you in a number of different ways. 

You can now apply for the SME Brexit Support Fund. Smaller businesses can get up to £2,000 to pay for practical support, including training or professional advice to adjust to new customs, rules of origin and VAT rules when trading with the EU. Applications must be received before 3‌‌0‌‌ Ju‌‌ne.

You can attend our webinars to help adjust to the new rules and keep your business moving.

We’re unable to answer questions specific to the items you import or export. Instead, you can use the helpline at the end of this email for these questions.

Our webinars explain existing GOV‌‌‌‌‌‌.UK guidance and give you the opportunity to ask general questions. You’ll also be able to see responses to other peoples’ questions and the guidance we signpost to for extra help and support.

Importing – steps you need to take before making your supplementary declaration: To support those who’ve delayed their customs import declarations, we explain the steps you need to take before you can make a supplementary declaration and how intermediaries can help you do this. 

Please register to take part if you’ve imported goods since 1 January 2021 and not yet completed a customs declaration for them.

If you’re planning to import and want to understand the full declarations process please register for Customs Import Declarations: an overview.

Exporting: what you need to do to keep your goods moving: An overview of the actions you need to take now before you export goods from Great Britain to the EU and move goods between Great Britain and Northern Ireland.

Key processes include – zero-rated VAT, customs declarations, using an intermediary as well as licences, certificates, and authorisations.

Please register to take part if you’re planning to export.

Trader responsibilities when using an intermediary: This webinar explains your responsibilities as a trader, if you choose to use an intermediary to complete import or export declarations for your business. These are complex and an intermediary can save you a lot of time.

Please register to take part if you’re planning to import or export.

Rules of Origin: Watch our recorded webinar if you buy goods from the EU, or send or sell goods to the EU for your business, this webinar will help you understand rules of origin and what’s required to meet the rules.

The recorded webinar can be paused or rewound to allow you to work through the information at your own pace. 

You can also:

• watch our videos on HMRC's YouTube channel to familiarise yourself with the new customs processes and what you need to do before you trade goods with the EU
• use the trader checklist to make sure you’re familiar with the new rules that affect you
• use our updated guides to understand the new customs and VAT requirements when moving goods between the UK and EU countries
• sign up to the Trader Support Service if your client’s business is moving goods between GB and Northern Ireland and use their suite of educational products – including online training modules and webinars for support with the Northern Ireland Protocol
• ask and get answers to specific questions about HMRC processes for importing or exporting, by visiting our customer forums
• watch webinars and videos from other government departments to support you.”

ENDS