The fiscal impact of Brexit in the customs area and special taxes

Next October 31st it is planned that United Kingdom will no longer be part of the European Union, if a transient output agreement does not take place. This situation will mean that from November 1st the UK will abandon the single market and the customs union.

 

In order to help the enterprises to face the Brexit challenges, the Inland Revenue (AEAT) has sent a letter in which it explains in a detailed way the effects that will have in the custom and fiscal level. 

 

We summarize the key aspects of the letters below:  

 

With the exit of the United Kingdom from the European Union, the cargo flows within that country and Spain will cease the consideration of intra-communitarian operations in order to be subjected to clearing formalities.   

 

The AEAT warns that these formalities include the presentation of a customs declaration of importation / exportation or linkage to another customs regime for each sending, just as the realization of customs controls, the payment of customs duties and other charges that would be accrued to the introduction or need to obtain sanitary, phytosanitary, quality and other kind of certifications to have the corresponding goods.

 

For this reasons, the letter emphasises that the Brexit can have a significant effect on the enterprises and their logistic flows, so these should evaluate the impact and advance to the extent possible the necessary formalities, bearing in mind the following considerations: 

 

– For the introduction / sending of the goods from the Peninsula, Baleares or Canarias to the United Kingdom it will be necessary the presentation of a declaration in a normal custom. According to the type and volume of traffic, it can be convenient to opt for some of the simplified procedures of declaration expected in the custom legislation. 

 

– On the other hand, the enterprises will have to determine if the goods that they commercialize with are subject to any type of authorization or certificate issued by the competent authorities that requires previous additional procedures to the importation exportation.

 

The AEAT reminds that the exportations to the United Kingdom are exempted from VAT, being the custom declaration of exportation one of the admitted testing means of proof for the purpose of justifying such exemption.          

      

However, the importations to the United Kingdom are subject to the payment of the IVA to the importation, thus it must be discharged from the custom declaration and it must be deposited within the corresponding deadlines. Nevertheless, there is the possibility under certain conditions that the income taxes to the importation are deposited in the declaration-liquidation corresponding to the period in which the document is received, in which appears the liquidation practised by the Administration (VAT included). In addition, since the undertaken declarations between Spain and the United Kingdom are no longer considered intra-community, they shouldn’t be informed through the declaration of the model 349.

 

In order to be able to opt for the payment of the VAT, it is necessary to register the VAT monthly. If the period of the declaration was trimestral, it is possible to modify it through the inscription in the Monthly Refund Register (REDEME), in which case it would force the enterprise to adhere to the Immediate Provision of Information (SII).  

 

From the actual removal of the United Kingdom from the European Union, theexpeditions/importations of the products that are object of Special Taxes that will turn into exportations/importations and, thus, will be subject to the custom legislation of the Union.  

 

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From the actual removal of the United Kingdom from the European Union, the expeditions/importations of the products that are object of Special Taxes that will turn into exportations/importations and, thus, will be subject to the custom legislation of the Union.  

 

For further information and resolution of doubts, please contact us through the Fiscal Department (virginia.cirera@cinc.es).

 

Kind regards,

 

CINC Consultancy