From 1 May 2023, the new VAT related payment scheme for certain second-hand cars came into operation. HMRC has recently updated guidance for the scheme which now provides guidance for EU businesses on how to claim a payment if they do not have a business establishment in the UK. EU businesses can make their claim directly to HMRC from 1 August. They can prepare to make their first claim by:- appointing someone to deal with a claim on their behalf; or requesting access to the HMRC Secure Data Exchange Service to submit a claim electronically. The guidance pages relevant to this are as follows:- How to claim a VAT-related payment using the second-hand motor vehicle payment scheme if you do not have a business establishment in the UK; Submit a claim using the second-hand motor vehicle payment scheme if you do not have a UK business establishment; and Appoint someone to deal with VAT-related payments using the second-hand motor vehicle payment scheme. Other guidance pages relevant to the scheme are:- Check which records to keep for second-hand vehicles you export to the EU for resale; Sales of second-hand motor vehicles in Northern Ireland; Claim a VAT-related payment if you buy second-hand motor vehicles in Great Britain and export them to the EU for resale; Check which records to keep for second-hand vehicles you move to Northern Ireland for resale; and Claim a VAT-related payment if you buy second-hand motor vehicles in Great Britain and move them to Northern Ireland for resale.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit and we update you on recent developments in relation to the Retained EU Law Bill. The latest Trader Support Service and Borders Weekly Stakeholder Bulletins from 2 June and 9 June are available and see part 2 of our story on the Windsor Framework. Retained EU Law Bill At the end of May, the House of Commons considered the House of Lords amendments to the Retained EU Law Bill (Official Report part 1, and Official Report part 2). Parliament returned from a short recess on 5 June which was followed by Kemi Badenoch, the Minister responsible for the Retained EU Law Bill, appearing before the European Scrutiny Committee on 6 June. The House of Lords is to consider the House of Commons amendments to the Bill and the European Scrutiny Committee has published its report on the Windsor Framework. Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Check simplified procedure value rates for fresh fruit and vegetables; CDS Declaration Completion Instructions for Imports; Tell HMRC if you still need your EORI number starting XI; Search the register of customs agents and fast parcel operators; Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS); Search the register of customs agents and fast parcel operators; Check simplified procedure value rates for fresh fruit and vegetables; Search the register of customs agents and fast parcel operators; and Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020.

In this week’s EU exit bulletin, we bring you the latest guidance updates and publications relevant to EU exit and you can also read the Institute’s submission to the House of Lords inquiry into the Windsor Framework (“WF”). Key messages from a recent meeting with HMRC on the WF are also available and the Retained EU Law Bill is proceeding through the final stages in the House of Lords. The latest Trader Support Service and Borders Weekly Stakeholder Bulletins have been published. And finally, we bring you news of an enhancement to the Goods Vehicle Movements Service (“GVMS”). Enhancement to the GVMS. From 16 May 2023, HMRC introduced an enhancement to the GVMS which means that taxpayers can now upload up to 2,500 Import Movement Reference Numbers for EU to Great Britain movements. Retained EU law bill Report stage of Retained EU Law (Revocation and Reform) Bill took place last week on 15 and 16 May in the House of Lords. Peers in the House proposed amendments to the Bill, with the Government defeated on several occasions. One significant amendment was made for changes to the Bill to be subject to greater parliamentary scrutiny via referral to a Joint Committee of both Houses of Parliament.   Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Schedule of Retained EU law; Pay no import duties or VAT on importing goods for testing; Pay no import duty and VAT on importing commercial samples; Pay no import duty or VAT on donated medical equipment; Pay no Customs Duty or VAT on blood grouping, tissue typing and therapeutic substances; and Pay no import duty or VAT when importing animals for scientific research.

Last week Chartered Accountants Ireland attended a special meeting of the Northern Ireland Joint Customs Consultative Committee at which Government Officials provided an update on the Windsor Framework. The key messages for current goods movements from the first meeting in February after announcement of the WF remain the same. Other matters of interest are outlined below and we will feature more in Chartered Accountants Tax News over the next few weeks. The Institute has been pressing the UK Government on several EU exit matters for some time now. Updates were provided in the meeting on the Trader Support Service (“TSS”) and the long awaited reimbursement scheme, in addition to some other key areas. Trader Support Service (“TSS”) The message remains that the Government recognises both the significant support the TSS has provided to businesses and the large number of traders that have benefitted from its assistance since 2021. The TSS will continue to support traders throughout 2023 to meet the requirements under the Northern Ireland Protocol. Traders will continue to be supported to understand the new Windsor Framework requirements and what it means for them. Reimbursement scheme The timeline for the scheme to open is summer 2023. Claimants will not need to be registered under the UK Trader Scheme or the new UK Internal Market Scheme in order to claim a reimbursement of tariffs. Evidence must be provided to support reimbursement scheme claims and this must retained by claimants. HMRC will provide examples of supporting evidence in guidance. Bulk claims will be possible. We asked what the expected timeframe for refunds is likely to be and HMRC reflected that as the scheme is likely to see significant demand initially, a timeframe cannot initially be provided. The scheme will apply to reimbursement of tariffs paid on goods classed as being at risk which later become/became not at risk under the original Protocol and on goods which move in the new red lane which should originally have been green lane movements under the Windsor Framework. The time limit in which claims must be made will be standardised after a period of time and set out in guidance. However initially, claims will be possible back to 1 January 2021. A new improved customs duty waiver scheme will also be available via a digital process. More information on the scheme is expected to be available in the next few weeks. New UK Internal Market Scheme The expanded UK Trader Scheme will be known as the UK Internal Market Scheme (“UK IMS”) and is expected to open for reauthorisation of existing UK Trader Scheme users in early June with the scheme commencing from 1 October 2023. The UK IMS will underpin green lane movements. More information on the scheme and how to apply will follow in the coming weeks as will more detailed guidance on green and red lane movements and how these will operate, including the data sets required for each (8 digits for red lane and 6 digits for green lane). The new UK IMS will be open to traders established anywhere in the UK and will enable participants to set up a unique goods profile for their movements.

Earlier this month, the Institute made a submission to the House of Lords inquiry into the Windsor Framework (“WF”) which has now been accepted by the Committee as evidence. The submission focuses on the ongoing need for a permanent solution to the lack of customs intermediaries/capacity in the Northern Ireland market, the vital role of the Trader Support Service and it also highlights the importance of guidance. Not enough detail is currently available on how the new Trade Operating Model (“TOM”) will operate on a practical level, particularly regarding customs and the operation of the new processes for red and green lanes. It is therefore important that HM Government provides operational detail on the new TOM as soon as possible, via detailed guidance (developed in conjunction with stakeholders and containing case study examples), and underpinning legislation, so that businesses can assess before it comes into operation how this impacts on their specific supply chain and prepare accordingly, including identifying any challenges. This is especially important given disparities which have been identified between the UK and EU’s publications on the WF. Any new processes to be introduced must also be tried and tested and some uncertainties also remain around the ‘at risk’ test which other bodies have already highlighted; these must be ironed out before the new TOM is introduced. It is also currently unclear how the many and varied types of goods movements from GB into NI will specifically be dealt with, including goods moving from the EU to GB and onward to NI. Unless detailed guidance is available well in advance, trade disruption is likely to occur and there may be further withdrawal from the NI market by some GB traders. Overall, the WF risks fixing problems for some supply chains only to shift new and different problems, burdens and frictions onto others. Ultimately, until accompanying legislation, detailed policy and guidance, and information on new processes is provided, it is difficult for NI businesses to fully assess and consider the practical impact on trading routes and identify any unintended or knock-on consequences.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. Read the Institute’s submission to the House of Lords inquiry into the Windsor Framework and The Retained EU Law Bill is proceeding through the final stages in the House of Lords. The latest Trader Support Service and Borders Weekly Stakeholder Bulletins are also available and we bring you news of an enhancement to the Goods Vehicle Movements Service (“GVMS”). Enhancement to the GVMS. From 16 May 2023, HMRC introduced an enhancement to the GVMS which means that taxpayers can now upload up to 2,500 Import Movement Reference Numbers for EU to Great Britain movements. Retained EU law bill Report stage of Retained EU Law (Revocation and Reform) Bill took place last week on 15 and 16 May in the House of Lords. Peers in the House proposed amendments to the Bill, with the Government defeated on several occasions. One significant amendment was made for changes to the Bill to be subject to greater parliamentary scrutiny via referral to a Joint Committee of both Houses of Parliament.   Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Schedule of Retained EU law; Pay no import duties or VAT on importing goods for testing; Pay no import duty and VAT on importing commercial samples; Pay no import duty or VAT on donated medical equipment; Pay no Customs Duty or VAT on blood grouping, tissue typing and therapeutic substances; and Pay no import duty or VAT when importing animals for scientific research.