Brexit: Export to UK and the new customs regime
How to export to UK from Italy after Brexit deal
On January 1, 2021, the agreement between the EU and Brexit came into force.
It is a wide-ranging agreement, touching many points, first of all the commercial one. The new rules, which came into force on January 1, 2021, include new customs formalities, both for an Italian company exporting to the UK and for a British company exporting to the EU.
Two crucial points that change are the VAT regime applicable to transactions between the EU and the UK and the customs regime.
Today we are taking a closer look at the new customs regime.
The new customs regime for exporting goods from Italy to the UK
Goods that leave the EU and are shipped to the UK become non-EU goods. In this situation, the fulfilments of an Italian company that must export to the UK are the appointment of a fiscal representative in the UK to carry out the customs formalities for the importation of the goods. This figure is necessary for the presentation to UK customs of the declaration that accompanies every parcel destined for the UK. As far as the documentation for importing into the UK is concerned, in addition to the invoice and transport document, a declaration of the quality, quantity, origin and value of the goods is required, according to the rules of EU customs law.
The new fulfillments represent an extra cost compared to the pre-Brexit situation. The Italian company exporting to the UK will have to take them into account for a complete evaluation of the profit margins that can be achieved with the export. In addition, the possible sanctions during customs verification, both of documentation and of the goods, whether incoming or outgoing, could generate another cost.
Do you need more information on how to make business in Italy or on the Italian tax system? Contact our Milan S&T Accountant Office at 02 36 525 293 or write an email to a firstname.lastname@example.org.