Electric.ie Jan/Feb 2021

ELECTRIC.IE • The Magazine & Website for the Irish Electrical Industry • 59 between the EU and GB (i.e. goods of EU or UK origin). Determine if your products meet the origin tests to qualify for tari free trade between the EU and GB and familiarise yourself with the process for supplier statements of origin status for qualifying products. 6. Paying any Customs duty and VAT How will you pay or defer any customs duty or import VAT payable at the time of import? For any Duty, can you use the deferral account of your agent? If not, you can pay via a TAN account (which is allocated to traders when they receive an EORI number) or a customs deferment account if you have one. If your goods qualify for tari free trade with GB under the Trade and Cooperation Agreement, then you will not have to pay Customs duty but you will still have to consider import VAT. Assess whether you will qualify for postponed import VAT accounting which would eliminate the requirement to pay VAT at the point of import. 7. Export/Import Controls Understand whether any additional controls will apply to your goods such as licensing requirements, Sanitary and Phytosanitary (SPS) controls or advance noti cation requirement (e.g. for agri products). 8. Importing into the UK If you intend to customs clear goods in the UK, ensure you are familiar with the phased plan the UK Government has announced for the introduction of border controls on imports of goods into GB from 1 January 2021 up to July 2021 and the implications and additional criteria if you are not UK Customs established (e.g. the need to have an indirect representative etc.) 9. GB will become a third country for VAT purposes e VAT rules for trading goods on the island of Ireland will remain the same but the rules for trade in goods between ROI and Great Britain will change and the rules for the supply of certain services cross border to and from GB and between ROI and NI will change also. Familiarise yourself with how these new rules will operate and apply to your business. For example, those particularly impacted include sellers of goods B2B and B2C into GB from ROI and vice versa and also those supplying certain services B2C from ROI to GB and NI and vice versa. Determine if any additional VAT considerations will arise from your movement of goods post 1 January 2021 or your supply of services, e.g. additional VAT registration requirements, no requirement to apply VAT on certain B2C supplies of services into GB and NI. 10. Impact on ERP / nance system As customs declarations will now be required when trading between ROI and GB, this will have consequences for ERP / nance systems. Assess what nal changes may be required to your ERP (Enterprise Resource Planning) or nance systems in anticipation of a changed VAT and Customs Duty accounting regime post 1 January 2021. 11. Use of Customs relief / simpli cations Make sure you are aware of the reliefs and simpli cations available such as customs warehousing, inward processing relief, transit which could mitigate the impact of Brexit on your business in ROI or GB, in particular in non-transit cases where the goods do not qualify as being of UK or EU origin. A guarantee is o en required and, depending on the type, authorisations can take several weeks or months to process. If not in place now these could be put in place subsequently. Critical criteria e following three criteria are required to enable you to keep trading with GB post 11pm on 31 December 2020. 1.Make sure you have an EORI number 2.Make sure you have the ability (in house or via an agent) to le declarations and understand what information is needed for the declarations and if any additional controls apply to your goods movements. 3.Ensure you have the ability at the time of import to pay or defer any Duty arising on import of goods into Ireland and to pay or postpone import VAT. Find out more... If you have any queries on how Brexit will a ect your business search Brexit Response Team at www.kpmg.ie Industry News Brian Daly, KPMG Ireland.