- 21st October 2020
- Posted by: Suzy Hill
- Category: Business News, VAT
HMRC urges businesses to ensure they are ready for new customs and tax rules
HMRC has urged businesses to make sure they are prepared for new customs and tax rules so that they can continue to trade with the EU from 1 January 2021.
In a letter to VAT-registered businesses, HMRC stated that it is ‘really important’ that firms act now. Businesses will not be able to trade with the EU from 1 January 2021 if they do not have the correct processes, contracts and agreements in place.
Businesses will need to make import and export declarations to move goods between the UK and the EU. From 1 January 2021, if firms send goods from the UK to customers in the EU, they will be responsible for completing export declarations for those goods. If businesses import goods from the EU that are on the controlled goods list (such as animal products, alcohol or tobacco or firearms), they will have to make declarations from 1 January 2021.
Business Secretary Alok Sharma said: ‘Businesses must act now to ensure they are ready for the UK’s new start as an independent trading nation once more.
‘There will be no extension to the transition period, so there is no time to waste.’
The letter can be viewed in full here.