What is the impact of Brexit on foreign trade businesses?

As the UK formally leaves the EU, the UK's import policy has changed accordingly. In particular, cross-border e-commerce companies will have to adjust tariffs, VAT collection and registration, customs clearance procedures and other aspects of import in the UK. Here we have sorted out some contents that foreign trade merchants are most concerned about and have the greatest impact on foreign trade.

1. How will VAT be levied after Brexit?

The new UK Global Tariff cancelled the minimum VAT exemption for a single low-value imported product of 15£, and less than 135£is subject to VAT without Tariff. Subsequent products of basic merchants are subject to VAT in the UK.

There are two ways to collect VAT:

① Sales on Online e-commerce platforms: goods less than 135£are transferred from the import link to the Online Marketplaces (OMPS) sales link for withholding and payment;

② Offline sales: the seller needs to register the VAT number, and declare and pay the sales VAT in the import link

Both parties (for imports from EU/ non-EU to THE UK) can apply for VAT deferred account PVA for deferred payment, with an average of 30 days.

2. What is the value of ￡135?

Tariffs are calculated on the basis of FOB value of goods, excluding freight and premium:

① For goods less than 135 pounds, the VAT will be deducted and paid by the e-commerce platform

② > 135 pounds of goods, the seller to declare and pay VAT, customs duties

3. How does OMPS implement collection and payment?

① Amazon, eBay and other e-commerce platforms implement VAT withholding and payment

② The seller shall include the VAT price in the selling price of the product, and the platform will deduct the VAT tax from the seller and pay it directly to the local government

4. What should the UK pay attention to when importing and exporting goods after Brexit?

EORI :(European customs import and export qualification) the eu EORI number will no longer apply to UK imports and exports, traders must use the EORI number starting with GB, i.e. the EORI number registered in the UK

Sellers need to stock their goods separately: As a result of Brexit, logistics integration between the UK and the EU will stop, and goods will have to go through repeated customs clearance and tax procedures

CE and UKCA: The UK only recognizes the UKCA certification (which replaces the CE certification currently in place in the EU), and dual-market sellers must have both certifications