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BREXIT: Trading with the UK after 31st October. Instructions from the Spanish tax office

This is a summary of the tax office letter being sent to Spanish businesses that have commercial relationships with the UK.

-The UK exit from the European Union is expected to take effect on 31 October 2019. If there is no agreement including a transitional period, this departure shall imply that, from 1 November (00:00 CET), the United Kingdom will leave the single market and the Customs Union.

-From a customs point of view, such an exit will imply that the movement of goods between Spain and the United Kingdom will no longer be considered as intra-Community operations.

-From 1 November 2019 they will be subject to customs formalities. These formalities include the submission of a customs import/export declaration, customs controls, payment of tariff duties and other levies.

-For these reasons, BREXIT can have a significant effect on your organization and/or your logistics , for which we consider it a necessity to evaluate and predict its  impact taking into account the following considerations:

1 – The introduction/shipping of goods from the Spanish Peninsula, the Balearic Islands or the Canary Islands to the United Kingdom will require the presentation of a normal customs declaration.

2 – Depending on the type and volume of traffic, it may be convenient to opt for some of the simplified declaration procedures provided for in customs legislation

3 – It should be noted that all economic operators must identify themselves for customs purposes with a registration number

(EORI number), valid throughout the European Union.

4 – The Tax Office  has automatically allocated an EORI number to all operators who had been conducting commercial operations with the United Kingdom.

5 –  You can look up your EORI number (your NIF preceded by ES) in the relevant section of the Tax Office website.

6 – Operators not established in the Union (EU 27) will have to additionally nominate a fiscal representative.

7 – In accordance with Union customs rules, you may submit your customs declarations by yourself or  through a customs representative registered in the relevant register.

8 -Please take on account that if you choose a customs representative, he will need time to learn about your business and the applicable formalities.

9 -On the other hand, you must find out if the goods that you are trying to import or export are subject to any type of authorization or certificate required in addition to the regular custom requirements.

10- You can learn about the rules applicable to each type of goods in the European Commission´s TARIC database

11 – With regards to IVA, your shipments to the United Kingdom will be IVA exempt as they will be classed as “exports”. The customs export declaration will serve as justification for the exemption.

12 – On the contrary, your imports from the United Kingdom will be subject to the payment of IVA on importation. This IVA is payable at customs

13 – With regard to special taxes BREXIT would imply that from the effective exit of the Kingdom, all goods affected by these taxes are converted into exports/imports and, therefore, the customs rules of the Union are fully applicable to them.