Brexit Preparations for EORI numbers

If the UK leaves the EU without a deal, it will no longer have access to the EU single market. At present, most goods move freely, zero-rated between VAT registered businesses if a valid registration number is provided. In the scenario of a no-deal Brexit, UK businesses moving goods to and from the EU will need to have an Economic Operator Registration and Identification (EORI) number.

HMRC began the process of auto-enrolling UK, VAT registered businesses earlier this month via post. HMRC are not auto-enrolling businesses that aren’t registered for VAT; they will need to do this themselves.

It should also be noted, businesses that have a presence in another EU member state, will also have to apply for an EU EORI. They should apply to the state they have a presence in, or the first Member State they lodge a customs declaration.  

Businesses should also consider whether they complete their own customs declarations or whether they wish to engage an Agent. HMRC have provided guidance on the process which includes the requirement for specific, compatible software, the completion of numerous documents and advise on the requirement for HMRC’s agreement to complete the declarations.

Who will this affect?

Businesses most likely to be impacted by these changes are those who move goods to and from the EU and within the EU. Businesses moving goods between Southern and Northern Ireland will not be affected.

Businesses already moving goods to and from 3rd countries (USA, China and India etc.) will already have an EORI number. They will not be required to get another EORI number unless they need to lodge customs declarations in an EU member state, then they will require an EU EORI.  

Please be aware, these are the current instructions. There are likely to be updates and changes as we approach 31st October.

Further Information:

The government are running a series of events to help exporters get ready for Brexit on 31 Oct. Topics will cover the impact on supply chains, changes to regulations and contracts and where to find tariff information. Click here to find your nearest one.

If you would like to speak have any concerns regarding this article, please get in touch or call 01903 234094 and ask to speak to a member of our Tax Team.