Brexit
On January 1th 2021, the United Kingdom officially exited the European Union and became a non-EU state. Therefore, supplies and purchases of goods are no longer intra-EU transactions, but rather exports and imports.
Supplies of goods, like all EU exports to non-EU countries, must be invoiced as “Non-taxable exports under Article 8 paragraph 1 (letter a or b) ex Presidential Decree 633/1972” and require a customs export declaration.
Supplies of goods, like all EU exports to non-EU countries, must be invoiced as “Non-taxable exports under Article 8 paragraph 1 (letter a or b) ex Presidential Decree 633/1972” and require a customs export declaration.
Purchases of goods also become import transactions. The invoice for purchased goods is recorded in the general ledger and the import customs bill in the IVA purchase register for IVA deduction.
In addition, unlike before Dec. 31, 2020, supplies and purchases of goods from the EU to the UK no longer require the submission of an intrastat form, as these are non-EU transactions.
Regarding duty exemption, the EU and the UK have a free trade agreement that provides no import duties for goods from the EU and the UK.
The goods must meet “preferential origin” requirements to qualify for this exemption:
In addition, unlike before Dec. 31, 2020, supplies and purchases of goods from the EU to the UK no longer require the submission of an intrastat form, as these are non-EU transactions.
Regarding duty exemption, the EU and the UK have a free trade agreement that provides no import duties for goods from the EU and the UK.
The goods must meet “preferential origin” requirements to qualify for this exemption:
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Products internally obtained
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Processed products with material internally sourced from the EU or the UK
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Processed products with components that are not of preferential origin, but whose processing is deemed to confer preferential origin.
Many U.K. customers require that the REX registration number be included in the declaration of origin of commercial documentation to certify the origin of goods.