In business it can often feel like the only constant is change and the ability to respond quickly with sound economics can often be the difference between success and failure.
An example is that between January 2020 and December 2020, Ireland imported €1,606,381m worth of goods from the UK and apart from some currency turbulence, there was a relatively seamless delivery of goods.
Fast forward to 2021 and once again things have changed, bringing with them the need for a masterclass in understanding new import rules and regulations, while trying to get 2021 off to a positive start and cope with the impact of Covid-19.
The Learning Zone.
There is a business case to make that learning how to import should now be part of business planning and would include resourcing in order to meet the inter-dependent and directly connected, Revenue requirements and business deadlines.
At McManus McCabe we believe importing will quickly get to the point where it is business as usual. In the meantime, our recommendation is to look at the current situation as another Revenue requirement to work on in partnership with your professional adviser, while you take care of business. The table below is a snapshot of rules, payments, reporting and management.
|V.A.T. Rules.||V.A.T. Payments.||V.A.T. Reporting.||Customs Management.|
|Withdrawal Agreement||Postponed V.A.T. Accounting.||V.A.T. Return Forms.||Customs Consultancy.|
|The U.K. was in a transition period from February 2020 until 31 December 2020 and during this period V.A.T. obligations remained unchanged.||Instead of paying import VAT immediately and then claiming it on the subsequent VAT return, the VAT amount is entered as an input and output on the same return. This avoids a significant impact on the cash flow position of Irish businesses.||The system for reporting of V.A.T. to Revenue has been amended to include additional fields for postponed accounting and return of trading details.||Our team can carry out a fully customised review of your business and its supply chain. This is an excellent opportunity to list precise actions that will help to comply with all rules, meet reporting requirements and help ensure business runs smoothly.|
|V.A.T. Rules Start Date.||Postponed V.A.T. Accounting. Other Countries.||Revenue Rules and Conditions||Customs Authorisation|
|At 11.00 pm on 31 December 2020, the UK became a third country for VAT purposes and we must follow the rules of trade with a non-EU country.||An added benefit is if a business is importing goods from other non-EU countries, they can also avail of postponed vat accounting.||Businesses will have to meet certain conditions to avail of postponed accounting. Revenue may exclude traders who don’t fulfil specific requirements.||McManus McCabe have Customs Clearance Partners who can manage all customs related matters, including registering for EORI and compliance with reporting requirement to avoid supply chain disruptions.|
|V.A.T. Northern Ireland.||Cash Payments.||V.AT. Postponement Exclusions.||Customs Clearance Agent|
|Northern Ireland (NI) is treated as a Member State with regard to VAT on goods. NI is not treated as a Member State with regard to VAT on services.||Revenue provide the use of an online payment facility to pay customs charges for VAT, Customs Duty, Excise Duty. In order to optimise this payment facility a credit account set-up with a customs clearance agent is best practice and advised.||If excluded, V.A.T. must be paid at point of entry. This may be a risk to cashflow, therefore efforts should be made to move to the postponed option.||While larger companies may have someone in-house who can handle customs paperwork, small and medium-sized businesses usually need a customs clearance agent to do this on their behalf. We can support this together with our Customs Clearance Partners.|
|Shipment and Deliveries.||V.A.T Rates & Exclusions.||Northern Ireland Protocol||Our Contact Details.|
|V.A.T. & duties are payable on shipments based on product information provided by the shipper. Charges must be paid up front and either the seller or courier pay before goods are released. A Direct Representative must make declaration details to Revenue.||When calculating V.A.T. rates on imports, apply the rate to be charged when selling the product in Ireland. Purchases below a certain price are exempt from VAT as are some categories of products. It is important to be aware of these in trade between the UK & Ireland.||Under the Northern Ireland Protocol, trade in goods across the island of Ireland, North and South, will continue unaffected with no change at the border, no new paperwork, and no tariffs or regulatory checks.||Phone: +353 1 612 0429
We have invested time and resources in understanding the import requirements your business needs to follow so as to be able to give you the advice you need.
If you would like to discuss your immediate needs on a complementary call, please don’t hesitate to get in touch.