Brexit update: HMRC publishes guidance on UK Intrastat requirements after the end of the transition pe | Deloitte Netherlands

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Brexit update: HMRC publishes guidance on UK Intrastat requirements after the end of the transition period

Indirect Tax Alert

Intrastat declarations required for the rest of 2021 for goods transported from the EU to the United Kingdom.

2 November 2020

In the light of Brexit, one of the key assumptions was that Intrastat reporting would no longer be required for UK-EU trade as of 1 January 2021. The UK government however recently published a FAQ addressing the UK Intrastat requirements as of 1 January 2021. For goods being transported from the EU to the United Kingdom, all UK VAT registered taxpayers would be required to submit Intrastat declarations for the rest of 2021.

In case the cross-border supplies exceed certain thresholds, businesses may be required to file Intrastat declarations in order to report their intra-EU movements of goods. In order to grant companies the time to prepare on the three-phased UK border control and to ensure accurate trading data is generated, UK Intrastat requirements will partially continue to apply after the end of the transition period.

This obligation will of course only apply in case a threshold of GPB 1,500,000.- for arrivals of goods is exceeded, which applies to arrivals in both Northern Ireland and ‘the rest of the UK'. For dispatches from the UK, the Intrastat reporting obligations only apply to goods being ‘exported’ from Northern Ireland to any EU-Member State in case a threshold of GBP 250,000.- is exceeded. Movements of goods between Northern Ireland and the rest of the UK do not have to be reported in the UK Intrastat declaration.

As from 2022, businesses would no longer be required to report all arrivals of EU goods in the UK. For Northern Ireland, the obligation to report the arrivals and dispatches of goods from and to the EU will continue to be required for the lifetime of the Northern Ireland-protocol (minimum of 4 years).

What does this mean for you?

We strongly advise to closely monitor whether the relevant thresholds are exceeded to analyze whether the abovementioned UK Intrastat requirements may apply to your business activities. Further, it is recommended to analyze the impact of Brexit on your Intrastat and Extrastat declarations in other EU-Member States in case you trade with both Northern Ireland and ‘the rest of UK’.

For more information, please send an email to nltaxbrexitteam@deloitte.nl or contact your engagement team.

This alert and related newsletters can be found on our website.

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