The UK’s exit from the European Union, or Brexit, will take effect on 29 March. It will therefore become a “third country”. If no agreement is reached on an exit that includes a transitional period, this exit will mean that, from 30 March, the United Kingdom will leave the single market and the customs union.
For this reason, the Customs and Excise Department of the Tax Agency is carrying out an information campaign. Aimed at entities established in Spain that could be affected by the new situation as of that date.
Among the most important aspects to bear in mind are the implications of this new situation.
Brexit from the customs point of view
Transactions with the United Kingdom will no longer be considered as intra-Community transactions and will be subject to customs formalities:
- Presentation of an import/export customs declaration or link to another customs regime for each consignment.
- Carrying out customs controls
- The payment of customs duties and other charges resulting from the introduction of or the need to obtain sanitary, phytosanitary, quality or other certifications in order to dispose of your goods.
All economic operators must be identified for customs purposes with a registration and identification number (EORI number). Valid throughout the European Union. If it is not available and operations are carried out with the United Kingdom, it must be requested from the Tax Office.
With regard to the lodging of customs declarations, in accordance with EU legislation, declarations may be lodged either in one’s own name or through a customs representative registered in the relevant register.
Goods traded may be subject from 30/March/19 onwards to some type of authorisation or certificate issued by the competent authorities requiring additional formalities prior to import/export. Such as:
- products for human use and consumption
- medicines and medical devices
- animals and plants
- wooden pallets
- fishery products
- textiles, footwear, toys, furniture,
- …among others
Brexit from the point of view of VAT
Shipments to the United Kingdom will be exempt as exports. The customs export declaration being one of the means of proof accepted for the purpose of justifying such exemption.
Imports from the United Kingdom shall be subject to payment of VAT on importation. It will be cleared on the customs declaration and must be paid in due time. Entities in monthly VAT declaration, may opt for the payment of VAT on importation to be entered in the declaration-settlement corresponding to the period in which the document evidencing the liquidation carried out by the Administration (deferred VAT) is received.
Transactions carried out between Spain and the United Kingdom are no longer classified as intra-community. Therefore, they should not be informed through the recapitulative declaration form 349.
Brexit from the point of view of Special Taxes
As from the actual departure from the United Kingdom, dispatches/receipts of excise goods shall be converted into exports/imports. The Union’s customs rules would therefore apply to them in full.
If you would like to know more about how these changes may affect your particular case, please do not hesitate to contact us.
Tax Consulting Dept.