The UK's EORI response to a hard Brexit

      British Prime Minister Boris Johnson asked the EU to restart negotiations on a withdrawal agreement, but the EU categorically refused on the 20th. As the deadline for leaving the European Union at the end of October looms, the British government is making intensive preparations, including allowing nearly 90,000 British export traders to automatically register into a customs system, so that the UK can continue to trade with the EU after Brexit.

      HMRC announced on 21 August 2019 that HMRC is stepping up its efforts to ensure businesses are ready to trade post-Brexit, with 88,000 businesses being automatically registered with an Economic Operator Registration Identification (EORI) number , to reduce delays in customs clearance of goods after Brexit.

      The EORI number is the UK Customs unique identification number for trade between the UK and the EU, used to identify every import and export trade declared by a business, trader or individual. After the United Kingdom "Brexit", the EORI number will become the only enterprise ID recognized by the British customs, and unregistered enterprises will not be able to continue to trade with EU countries. Enterprises that are not registered for VAT also need to register for an EORI number in order to conduct trade with Europe.

      After the UK leaves the EU and customs union on 31 October 2019, any business transporting goods between the UK and EU 27 will need an EORI number. This unique identifier must be displayed on customs declaration documents to help customs authorities track the disclosure and payment of relevant duties and import VAT.

      HMRC estimates that 245,000 UK businesses trade with the EU and therefore need an EORI number after Brexit. Only about 145,000 people have a VAT number. To date, HMRC says about 72,000 of those 145,000 people have applied for an EORI.

      The British Treasury said on the 21st that in the next two weeks, the tax authorities will automatically issue an economic operator registration and identification number (EORI) for more than 88,000 companies that have undergone UK VAT registration for identification by customs authorities; if Without this number, after the UK officially leaves the EU on October 31, it will no longer be able to trade with the EU.

      The Chancellor of the Exchequer has been determined to step up preparations for Brexit, and last month allocated an additional £2.1 billion for government departments to prepare for a "no deal Brexit". As an important part of "Brexit" preparations, border customs operations will be improved The additional support of 344 million pounds is mainly used to increase customs, border guards, and improve the transportation infrastructure around the port.

      Finance Minister Javid said: "The government is gearing up to leave the EU on October 31, and so should businesses. This will help smooth the flow of goods across the border and facilitate trade and growth for businesses. "

The UK HMRC official has issued a message that the following changes will occur to EORI and UK VAT after the UK leaves the EU without a deal.

EORI use after Brexit

① You need an EORI number starting with GB in order to ship goods into or out of the UK.

② If you already have an EORI number starting with GB, you can continue to use it. It will be 12 digits. If you are VAT registered, your VAT registration number will be included.

③ If you want to trade with EU countries, you also need an EU EORI number.

UK VAT use after Brexit

① After Brexit, you can use the UK VAT check service to check whether the UK VAT number is valid (this service is not yet available).

② You will no longer be able to use the EU's VAT number verification service to check the validity of your UK VAT number.

③ To sell goods to UK consumers, you must immediately register and pay VAT in the UK.

④ The distance selling threshold stipulated by the EU will no longer apply.

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