How can a Scottish business learn more about how to export goods into the EU from 2021?

Export goods from the UK: step by step

Register your business with the Trader Support Service (TSS) - a free service that can help guide businesses through the incoming changes to the way goods now move between Great Britain and Northern Ireland.

TSS also offer free training courses and will also complete some declarations on your behalf. 

How can a Scottish company export or move animal by-products (ABPs)?

Here are the actions that Scottish companies exporting or moving ABPs need to take: 

• Get either an export health certificate (EHC) or a model declaration form
• If you cannot find either of these for your product type, contact DAERA in NI
• Check and comply with HMRC guidance on customs requirements for exports to the EU or NI
• Check the EU list of products which must be inspected by a vet at a BCP (Border Control Post) in the EU or point of entry in NI

Further guidance on exporting animals and animal products to the EU from 1 January 2021

Will I now need an export licence for exporting my goods/services into the EU? How do I check if I need one and what I need to do?

Export goods from the UK: step by step 

Export licence goods include:

• Antiques
• Old works of art
• Live animals, including fish
• Animal products
• Endangered animals or plants, and products thereof
• Ozone-depleting substances, such as refrigeration and air-conditioning products
• Firefighting and foam blowing equipment and aerosols and solvents
• Medicines and controlled drugs
• Rough diamonds
• Dangerous chemicals
• Firearms, military or defense goods
• Excise goods

Access guidance on exporting animals and animal products to the EU from 1 January 2021

What range of products need an export health certificate? Is it only food products? 

Apply for an export health certificate using the online service 

The Export Health Certificate (EHC) is needed for exporting:

Live animals (including fish), or animal products such as food or germplasm, from the UK to Northern Ireland or the EU.

Guidance on the export of fish

Guidance on the export of animals

You should research the certificate process and plan to get your EHC as soon as possible. The process can take up to 2 weeks.

How does an export health certificate for products of animal origin work?

As of 1 January 2021, there are five actions that must be taken:

1. Get an export health certificate (EHC) so that you can: export POAO, live animals, or germplasm from the UK to the EU, and transit them through the EU and NI. There is a 3 month grace period from certification for authorised traders such as supermarkets and their trusted suppliers, from 1 January 2021 to 1 April 2021. If you’re moving products of animal origin from GB to NI, you do not require official certification, such as export health certificates, phytosanitary certificates or marketing standards certification, until 2 April 2021. Access DAERA guidance on goods moving to Northern Ireland
2. Get your goods checked at a border control post (BCP) or point of entry in the first country you enter after leaving the UK
3. Make sure your EU-based import agent has notified the BCP that your consignment is arriving - check with the BCP how much notice needs to be given 
4. Ensure you comply with wider HMRC guidance on customs requirements for exporting to the EU
5. Follow new rules on identifying animals, if you want to export or move them to the EU or NI after 1 January 2021

The Movement Assistance Scheme (MAS) will supply 'reasonable costs' for traders moving agri-food goods for which specific SPS controls apply, such as Export Health Certificates (EHCs) from official vets. The scheme removes the need for traders to pay certification costs and will reimburse the costs incurred, up to a set amount.

More information about the MAS

Where can I find a Meursing Code?

Access Meursing Code listings

The Meursing Code is a complex code system that classifies certain types of milks and sugars that are often used in biscuits and sweet treats. This code should be used in addition to the standard 8-digit commodity code which is used for all products. 

How can I find out what documentation or regulatory requirements apply for my products in overseas markets?

There are two resources you can check: The EU Market Database and the DIT, the Department for International Trade Worldwide.

List of goods commonly regulated worldwide:

• Food, drink & alcohol products
• Goods coming into contact with foodstuffs (tableware, containers, packaging)
• Pharmaceutical and drug products
• Cosmetic products
• Clothing (especially children’s clothing)
• Textile products and furnishings
• Toys, electrical devices, medical devices and equipment

We are supplying some goods free of charge for an overseas customer; can we show zero value on our documentation?

Ask your forwarder, customs broker or shipping broker for their advice as they may have experience with customs regulations and requirements in the specific country you'd like to send the goods to. 

If the advice is to go ahead, and your forwarder or brokers’ booking website allows it, you can declare your samples as 'zero value' on the booking. On your own shipping invoice and packing note include ‘free of charge goods, reason: samples only’.

Some forwarder or broker booking websites won’t accept a zero rate, so you can enter a small value and state it is for samples.

Are there any service providers that a company can outsource the preparation of export documentation to?

Yes, you can approach shipping brokers and customs brokers, as many offer the export documentation service for a charge. 

Does the GDPR still apply after Brexit?

The EU-UK Trade and Cooperation Agreement contains a bridging mechanism that allows the continued free flow of personal data from the EU/EEA to the UK after Brexit until adequacy decisions come into effect. This will be for up to 6 months.

Now that the transition period has ended, EU data protection law has been converted into UK domestic law.

For receiving personal dataflows from the EU:  

The adequacy decisions are anticipated to come into effect later this year (2021), EU adequacy decisions for the UK would allow for the ongoing free flow of data from the EEA to the UK. In the meantime, the EU-UK Trade and Cooperation Agreement contains a bridging mechanism that allows the continued free flow of personal data from the EU/EEA to the UK. As a sensible precaution, during the bridging mechanism, your business can use Standard Contractual Clauses (SCCs). The ICO also provides more detailed guidance on what actions might be necessary and an interactive tool that allows you to build SCCs.

For UK to EU dataflows:

There are currently no changes to the way you send personal data to the EU/EEA, Gibraltar and other countries deemed adequate by the EU. 

More information can be found on GOV.UK 

Can I still transfer data to and from the EU if the UK leaves without an adequacy decision?

Yes. The UK government recommends that from 1 January 2021 UK businesses have an alternative transfer mechanism (such as Standard Contractual Clauses) in place with EU/EEA counterparts to ensure personal data can continue to flow lawfully.

The data protection adequacy agreement is still a work in process between the UK and EU. It is wise for you to check regularly if it has been agreed on GOV.UK.

Is an EU EORI number different from an EU VAT number? 

It depends on the EU country. The EU VAT number is used to access taxes and the EU EORI number identifies companies doing business in the EU.

In most EU countries the EORI for business is based on the VAT number, however, in Germany the EORI is based on the customs number. A company usually has one EORI for the entire EU, even if the company has multiple VAT numbers throughout the EU.

The EU EORI number is very important when it comes to customs declarations i.e. to lodge a customs declaration in the EU, to submit an Entry Summary declaration, to lodge an Exit Summary declaration or to act as a carrier for air or water transport.

Do we require a different EU EORI number for each EU country we export to?

No, your business is better served to have just one EU EORI to use across the EU. This is more efficient for you as a business and for customs authorities. Each EU country has its own national address for EORI applications.

Access the list of the individual EU national customs websites 

Where do we apply for an EU EORI number?

Every EU country has its own national address for EORI applications. You can find a list of the EU individual national customs websites on europa.eu.

Best practice is to have one EU EORI number for your business to use across the EU.

What are the considerations for exporting to multiple EU distributors?

You should research getting an EU EORI Number, possibly an EU VAT number and you should think of recruiting a representative in the EU country you ship to most often or in most volume.

It is also worth looking into the Incoterms that would best suit your business needs, such as the exporting expertise and staffing levels in your business.

Possible Incoterms to consider:

• FCA (Free Carrier): Useful for inexperienced Scottish exporter and experienced EU buyers. Exporter is responsible for loading of goods from own premises and arranges transportation to the named place: port, terminal, or forwarder’s warehouse. Delivery, costs, and risk transfer to buyer when the vehicle arrives at this place and the carrier is responsible for unloading the goods. Exporter is responsible for export clearance.
• DAP (Delivered at Place): Useful for experienced Scottish exporter and inexperienced EU buyer. Exporter pays freight costs,  bears risk, and clears goods for export to the named place. Risk transfers from exporter to buyer when the goods are made available for unloading; unloading is at the buyer’s risk. Buyer is responsible for responsible for import clearance, import duty and VAT, transport costs in own country, following arrival at named place.
• DDP (Delivered Duty Paid): Suitable only for experienced Scottish exporter with EU EORI and EU VAT number, and who has business presence in destination country. Some EU countries require an EU fiscal representative. Exporter is responsible for delivering goods to named place in the buyer’s country. Exporter pays all costs in bringing goods to destination, including clearing for import and export, and duty and VAT payment. Risk transfers from exporter to buyer when goods are made available to buyer, ready for unloading at named destination.

We are a Scottish manufacturer and considering establishing a UK warehouse. Do we require an EU EORI number?

No, if you are only keeping a UK warehouse, an EU EORI will not be needed. However, if you will be shipping to the EU in volume or regularly, it is useful for you as a Scottish business to get an EU EORI number.

Further guidance on EU EORI numbers and how to appoint an EU-based representative to assist with imports into the EU 

What is a XI EORI and do I need one?

You need an XI EORI if you move goods to or from Northern Ireland. The XI EORI is also needed to enable movement of goods between Northern Ireland and the EU, as well as non-EU countries, such as the UK, the U.S, China. Apply at least one week in advance, before you need to move your goods.

Access more information on EORI numbers in section 4 of our Brexit Checklist.

Is there any update on organic certification and selling UK organic products within the EU?

The EU and UK have reached an agreement and the EU has recognised UK control bodies for the purpose of exporting organic products to the EU until 31 December 2023. Food and feed certified as organic in GB will continue to be accepted as organic in the EU until 31 December 2023. GB (England, Scotland and Wales) recognises the EU as equivalent for the purpose of trade in organics until 31 December 2021.

Normally when moving food products from GB to Northern Ireland, the accompanying documentation will be checked, the identity will be verified and a physical inspection will be carried out on a prescribed percentage of products. If your products fail any checks, be aware they will not be allowed into Northern Ireland and may be destroyed.

As with all foods arriving into Northern Ireland or the rest of the EU, you must be able to provide an audit trail for your goods. You need to show the customs processes used, prove the movement from the UK to Northern Ireland or the EU, show any import duty and VAT paid or due, and keep proof of origin, and HS code classifications for the goods. 

Import and export requirements for food and drink labelling 

All organic goods exported to the EU must have a valid COI using the EU’s Trade Control and Expert System New Technology (TRACES NT). Food and drink businesses should contact their control body to:

• Approve your business on TRACES NT for exports
• Stay up to date

Listing of Approved UK organic control bodies

Sign up or log in to TRACES NT

The UK has set up its own Geographical Indication (GI) scheme, effective from 1 January 2021 so it is not compulsory to use the UK scheme for packaging and marketing materials until 1 January 2024.

GI-protected food or drink products (except wine or spirits) produced and for sale in GB must use the relevant UK logo on packaging and marketing materials, for example a website or advert.

Producers or retailers of GB food, drink and agricultural GI products registered before 1 January 2021, will have until 1 January 2024 to change packaging and marketing materials to display the new UK GI logos. New UK GI logos are available to download and can be used from 1 January 2021. They will identify products protected under the UK schemes.

I’m a Scottish organic food manufacturer, selling goods on the EU and UK market, what kind of labelling and packaging changes can I prepare for? 

Guidance for food and drink businesses working with the EU

Organic food labelling: GB (England, Scotland and Wales) recognises the EU as equivalent for the purpose of trade in organics until 31 December 2021. If you are importing and exporting food and drink products, between the UK and EU you must:

1. Get a GB Economic Operator Registration and Identification (EORI) number
2. Decide if you want to hire an import–export agent, or make the declarations yourself
3. Contact the organisation that moves your goods to find out what they need to make the declarations for your goods, or if you need to make them yourself

EU Non-harmonised food products

Non-harmonised food products are food products where there are no specific additional EU rules. EU countries may be able to introduce their own national rules for these products which are subject to an EU notification procedure to make sure they do not create unnecessary barriers to trade. Non-harmonised food products can circulate freely on the EU market under mutual recognition rules.

It is essential for UK exporters of food products to achieve lawful marketing in one EU country, as once your goods have been lawfully marketed in one EU country, you may then be able to make use of the mutual recognition principle.

UK exporters of non-harmonised goods need to check if the first EU country in which they intend to market their goods has any national rules for those products and follow those rules, i.e. to comply with Spanish regulation on table olives. Read guidance about trading under the mutual recognition principle. You can also read product contact points that provide information about national rules.

What are the main changes to food and drink labelling after Brexit? 

I am a Scottish exporter using sanitary and phytosanitary (SPS) measures. What do I need to consider? 

Most countries will require you to have a Phytosanitary Certificate (PC) if you export fruit, vegetables, or other plants to be used as food (SPS).  

To export SPS from Scotland, you need to apply for a plant health licence.  

Check GOV.UK to find out if you need to obtain a certificate for the country you are exporting to.  

Products that require a Phytosanitary Certificate: 

• Fruit 
• Vegetables 
• Other plants that are to be used as food 

There is currently a waiver in place for goods moving from GB to Northern Ireland which gives 3 months for most foods and 6 months for chilled meat products. This means there is no need for an Export Health certificate or Phytosanitary Certificate for Northern Irish supermarkets and their suppliers only. As of 1 January 2021, a small SPS trader who is selling to a convenience store or small shop in Northern Ireland must complete an Export Health Certificate. 

The UK government will absorb the cost of Export Health Certificates for food products moving from GB to Northern Ireland, through a new Movement Assistance Scheme (MAS), introduced to support agri-food traders. MAS will take care of 'reasonable costs' for traders moving agri-food goods for which specific SPS controls apply, i.e. Export Health Certificates (EHCs) from official vets. 

Is the customs grant scheme still open? 

Yes, please note:  Although the Grant Scheme is open until 30^th June 20201, it is nearing the full allocation of funds. HMRC are currently advising if your application cannot be fulfilled due to funding, it will be placed on a waiting list to have funds allocated if and when funds are returned. All applications are considered on a first come first served basis.  Businesses should apply as soon as possible to secure their funding.

More information on the HMRC customs grant scheme and how to apply

Is there any guidance on European sales agents contracts after 31st December?

For information on European sales agents contracts from 2021 visit GOV.UK. 

There may be changes to this, or it may remain as it is now, unchanged.

What is the impact of employing EU nationals in the UK after the transition?

As of 1 January 2021, your business is required to do checks to ensure the visa and paperwork for your EU employees is correct.

Information on ongoing employment of EU nationals

Useful information if you plan to employ EU nationals from 1 January 2021

For qualified EU citizens you employ, who are already resident in the UK before the end of the transition period, their professional qualifications will be recognised in the UK beyond December 2020.

What is the impact on current EU nationals working in the UK after the transition?

EU nationals already in the UK need to apply as soon as they can to the EU Settlement Scheme. It is free to apply, and it is designed to allow existing residents to gain more permanent permission to remain in the UK.

For any incoming EU citizens arriving in the UK to live and work from 1 January 2021, a visa is needed in advance. This will be a skilled worker visa and workers will need to show they have a job offer from an approved employer sponsor to be able to apply. 

For more information on people, workforce and skills from 1 January 2021 visit our Brexit Checklist.

Will I need an EU representative if I do not have an EU subsidiary?

This depends on your individual business needs. It is advisable to appoint an EU representative if you are importing goods into the EU in volume or with regularity.

The EU representative can typically collect imports from ports as they arrive, and is required to be liable for any import duty or VAT that the primary business is unable to pay for any reason.

There are two different kinds of representative: it could be your EU-based sales manager that you have appointed, or your freight forwarder, either can act as your representative.

What are the implications for a business that supplies from Europe-NI, with invoices coming from head office in GB?

Invoicing between the UK and the EU could cause unnecessary issues. It may be an option to look into outsourcing invoicing to your European office or representative. This way, the invoicing is taking place between EU states only.

We have set up a new life sciences lab based in the UK, after transition how do I get registered with MHRA, how do I get our licensed medicines on the market?  

As of 1 January 2021, the Medicines and Health Products Regulatory Agency (MHRA) is the agency to approach for your medicine licencing needs. You can register with MHRA by email. You can also contact them for advice before you make your application.  

If your business plans to sell goods into Northern Ireland only, you are required to use the new UKNI mark from 1 January 2021. If your business is planning to sell goods within the UK, use the new UKCE equivalent, the UKCA - a new mark, for use within the UK only from 1 January 2021. If you plan to sell goods into the EU and Northern Ireland, you can continue to use CE mark for EU-bound goods. 

I am a UK-based manufacturer of medical devices, that I want to sell into Northern Ireland and the rest of the EU. What should I be looking at doing next year? 

As of 1 January 2021, guidance for UK-based businesses placing medical devices on the Northern Ireland market and EU markets is as follows; 

• Get the device registered by MHRA 
• Appoint your responsible UK person 
• Get the correct marking for your product 

The CE marking will continue to be needed for devices placed on the Northern Ireland market and EU market. If you currently CE mark your device based on self-certification, you will continue to be able to do so for the purposes of the Northern Ireland market.  

As of 1 January 2021, to place a CE marking on your device for circulation in both Northern Ireland and the EU, you must use an EU-recognised Notified Body to undertake any mandatory third-party conformity assessment, this is because the results of conformity assessments carried out by UK Notified Bodies will not be recognised within the EU. 

More information on the regulation of medical devices from 1 January 2021 can be found on GOV.UK. 

I am a medical device manufacturer, what changes to labelling should I be aware of?  

As of 1 January 2021, you need to ensure that your device meets EU labelling requirements to place it on the EU market. Both the CE and UKCA mark can be placed on a product so long as neither impedes the visibility of the other and both marking requirements are met. Devices placed on the Northern Ireland market from 1 January 2021 also need to meet EU labelling requirements. However, such devices will need to be affixed with a CE UKNI mark if mandatory conformity assessment has been undertaken by a UK Notified Body. 

What are the key actions for businesses involved in manufacturing, selling, importing or exporting medicines and medical devices?  

Make sure you're up to speed on the regulation of medicine and medical devices, clinical trials, devices and licencing.  

Learn about the regulation of medical devices, and the actions you will need to take to place a medical device on the Great Britain, Northern Ireland, and European Union (EU) markets from 1 January 2021. 

Can I apply for a licence for medicine after Brexit, using the UK as the Reference Member State (RMS)?

Under the terms of the Withdrawal Agreement, from 1 January 2021, the UK can continue to participate in the decentralised and mutual recognition licensing procedures but is excluded from acting as Reference member State (RMS). In addition, the UK cannot act as a rapporteur or co-rapporteur. 

Pharmaceutical firms will be able to continue UK batch release testing and Qualified Person certification in the UK, with this being recognised by the EU and vice versa.

Marketing authorisation holders and qualified persons for Pharmacovigilance will continue to be able to be based in the UK and access EU markets. There will be continued mutual recognition of manufacturing and distribution licences, as well as associated inspections such as good manufacturing practice (GMP).

Businesses based in the UK will be able to continue to apply for marketing authorisations via either the centralised or decentralised procedures.

How will the UK’s withdrawal affect Good Laboratory Practice (GLP) status of nonclinical studies conducted in the UK?

According to Article 2 of Directive 2004/10/EC, when submitting results, the laboratories referred to in Article 1 of that Directive shall certify that the tests have been carried out in conformity with the principles of Good Laboratory Practice (GLP)

Following Decision C (97)186/Final of the OECD Council on the Mutual Acceptance of Data in the Assessment of Chemicals, data generated in the testing of chemicals in an OECD member country (including UK), in accordance with OECD Test Guidelines and the OECD principles of GLP, are accepted in other OECD member countries. Member country (including UK), in accordance with OECD Test Guidelines and the OECD principles of GLP, are accepted in other OECD member countries.

How can I find the documentation needed from 2021, for moving controlled drugs between GB and Northern Ireland?

Medicines can be supplied from the Great Britain market to Northern Ireland without requiring additional regulatory importation controls (manufacture and import authorisation, batch testing and QP certification done in Northern Ireland or an EEA state) until 31 December 2021. This means that wholesale dealers can continue to supply medicines from GB to NI for an additional 12 months beyond the end of the transition period.

From 1 January 2022, medicines supplied from the Great Britain market to Northern Ireland will require the following importation controls done in Northern Ireland or an EEA state:

• Importation via a Manufacture and Importation Authorisation (MIA) holder
• Batch testing
• Certification by a Qualified Person

You can find further information on GOV.UK

Do I need to set up a new direct debit instruction for an existing UK DAN account, as CDS and CHIEF interact with banking services differently?

Yes. When the existing customs system CHIEF transitions to the new CDS system, you can talk to your bank to transition your direct debit instruction to CDS, for the existing DAN account.

This will help you prepare customs clearances into Northern Ireland under the Northern Ireland protocol, and make the duty deferment payments to CDS. It may be some months before CDS is ready but you can read the latest updates on GOV.UK. 

What documents do I need to issue to purchase goods from Ireland, arriving via NI?

You will not need to issue documents. Goods arriving from Ireland via NI are treated as an export from the EU, so they will arrive with the documents and declarations required by EU countries.

What advice would you give to a Scottish exporter who has been asked by a retailer in Ireland to deliver Delivery Duty Paid (DDP) when the Scottish company does not have an Irish importer? How do we pay import duties?

You can talk to your freight forwarders or customs brokers to find out what they can suggest. One potential option to investigate, is to establish an Irish customs account for your business to enable you to pay the Irish import duties yourselves.

It is important that, if you agree to DDP Incoterms, you understand that as the ‘seller’, your business will be the declarant in Ireland, this makes you responsible for import VAT and import duties if applicable.

Further guidance can be found on revenue.ie and incotermsexplained.com.

Where do we register for trader support service?

You can register with the Trader Support Service (TSS) if you move goods between Great Britain and Northern Ireland, or you bring goods into Northern Ireland from outside the UK.

TSS is free of charge, and it can guide you through any changes to the way goods will move between Great Britain and Northern Ireland. You can register yourselves for free training courses to help you gain more knowledge, and TSS can also complete some declarations on your behalf.

Learn more about support for export and customs documentation

What is a XI EORI and do I need one?

You need an XI EORI if you are moving goods to or from Northern Ireland, from 1 January 2021. A very convenient, time-saving way to get an XI EORI, is to sign up for Trader Support Service (TSS). You will be auto enrolled if you do so.

If you already have an EORI number that starts with GB, you'll need to apply for an XI EORI number if you have not already received one from HMRC in the post. The XI EORI is also needed to enable movement of goods between Northern Ireland and the EU, as well as non-EU countries, such as the UK, the U.S, China.

Further guidance on EORI numbers 

What does ‘at risk’ mean and what should we do if our goods are ‘at risk’?

If your business is moving  goods from the UK mainland to Northern Ireland, but the goods continue to Ireland or another EU country then they are ‘at risk’. If your business is moving goods from Northern Ireland and the goods are at risk of going into Ireland or another EU country, they are also ‘at risk’. This ‘at risk’ status means the goods may be subject to tariffs, paying import duty and VAT. Your business needs to declare to HMRC customs if your goods are ‘at risk’. Northern Ireland must comply with both UK law and EU law.

To declare goods not ‘at risk’ from 1 January 2021 you’ll need to apply for an authorisation for the UK Trader Scheme.

Find out how to claim a waiver if you are bringing goods into Northern Ireland from Great Britain which might otherwise incur ‘at risk’ tariffs. You claim a waiver for customs duty on your import declaration. This is the only way you can make a claim. 

Even with the UK EU Trade deal in place, the impact of ‘at risk’ continues. Businesses should still register for the UK Trader Scheme:

• The trade deal has Rules of Origin requirements for each tariff line, if UK businesses cannot meet the Rules of Origin requirement, tariffs will apply
• Regarding Trade Remedies, UK and the EU, have different policies, which may impact onward movement of goods to Ireland
• Regarding dual use goods and the need for Open General Export Licenses (OGEL’s), if goods move to Ireland
• The UK and EU may disagree on how the deal is being implemented over time, meaning tariffs would apply

What does transit mean for our business, how do we know if our goods in are in transit?

If a UK business moves goods to Northern Ireland through another country in the EU (including Ireland), they have been in transit. Transit movement means that no import duty or VAT is paid until the goods reach the destination. Transit is a procedure that must be declared to customs by the sender or freight forwarder on behalf of the sender. The use of transit can be useful for businesses who move goods across multiple territories.

For more information visit GOV.UK

I work in a Scottish business that sells goods into Northern Ireland and Ireland, what do I do?

Ensure you have an EORI number to import and export. Your goods will need import declarations, safety and security declarations for movements from Scotland to Northern Ireland. These are most often done by your freight forwarder on your behalf. It is wise to talk to your freight forwarder now to arrange help with this.

If you move food and agricultural products or goods classified as sanitary and phytosanitary, you will need export health certificates as well as knowledge of specified processes which you will need to arrange in advance.

If you move goods direct from Scotland to Ireland, there are some similar actions you need to take.

If you move goods into Northern Ireland, and they are ‘at risk’ of moving into Ireland, you will be required to pay the import duty and VAT unless you're able to claim a preferential rate of duty under the UK-EU FTA.

Find out if you can charge customers VAT at 0% (known as 'zero rate') when exporting to the EU.

Accounting for VAT on goods moving between Great Britain and Northern Ireland from 1 January 2021

What is the UK version of the CE mark? What does this mean for my business?

The UK's CE equivalent is called the UKCA, this is a new mark, in use within the UK from 1 January 2021. If you plan to sell goods into the EU, you should continue to use the CE mark for EU-bound goods.

If your business plans to sell goods into Northern Ireland, you are required to use the new UK(NI) mark from 1 January 2021.

For more information on the UKCA, visit section 8 of our Brexit Checklist.

Will I face new restrictions when setting up a presence in EU after the transition period?

UK businesses receiving standard rights to establish a presence in the EU need to establish minimum numbers of local staff for different roles in the business. There will be different numbers of establishments permitted, and foreign ownership rules for businesses will apply.

More information can be found at cbi.org.uk 

I am a partner in a drinks business in the Scottish islands. We are planning to work with a business in Ireland who will market and sell our products in Europe. We want to send our Scottish teams to the Ireland office to help set up that side of the business. What should we do for 2021? 

As of 1 January 2021, changes have been made to the supply of services to Ireland from the UK.  

Guidance can be found on GOV.UK 

If you are supplying professional services to an EU country, you will need to ensure your professional qualifications are recognised so that any work done there by your team is covered by EU regulations and laws applicable in Ireland.  

If you are a business based in the UK, the place of supply of your services is the EU, and your customer is a VAT registered business, you must charge VAT due in the EU country of supply. This means that if your Irish marketing company is a VAT registered business, you will charge VAT in Ireland. If your Irish customer is not a VAT registered business, then you will charge VAT in the UK.  

More information on place of supply can be found on GOV.UK   

I am a Scottish manufacturer and supplier in the engineering industry, I need to know about exporting business services to Norway in 2021. We are sending invoices to Norway for promotions of a manufacturer’s products in China. Our business is UK VAT registered. What VAT should we charge? 

From 1 January 2021, as your services will be provided to Norway, which is in the EEA, not in the EU, Norwegian rules will apply. Contact the Norwegian e-government portal online, to ask for specific advice about industry regulations and selling your business services into Norway.      

Further Norway specific guidance on the recognition of professional qualifications 

It is also advisable to research rules on Point of Single Contact for Norway.    

Given that your services are going to the place of supply which is Norway, and this is not in the EU, you will need to find the country-specific rules on VAT relating to Norway.

I am the owner of a Scottish islands-based food and drinks manufacturing business. We often send our engineering staff to help train German colleagues at our new partner site. What do we need to prepare for 2021? 

As of 1 January 2021, you need to ensure your professional qualifications are recognised in Germany to ensure that any work done there by your team, is covered by German regulations and laws. You can find the Point of Single Contact for Germany on europa.eu.  

Further guidance on providing engineering services to Germany from 1 January 2021 

You can contact German advisors, to find out more industry-specific information on bmwi.de  

If you are a business based in the UK, the place of supply of your services is the EU and your customer is a VAT registered business, you must charge VAT due in the EU country of supply. This means that if your German partner company is a VAT registered business, you may charge VAT in Germany. If your German partner company is not a VAT registered business, then you will charge VAT in the UK.  

More information on VAT place of supply from 1 January 2021   

I am from a Scottish IT software business and would like some advice on exporting services to Denmark. I need to send invoices for agency services related to training for a manufacturer's products in Hong Kong and the U.S. My company is VAT registered, so do I have to charge VAT?  

As of 1 January 2021, you need to ensure your professional qualifications are recognised by Danish regulators in order to continue supplying your services into Denmark.  

From 2021, if you are a business based in the UK, the place of supply of your services is the EU, and your customer is a VAT registered business, you charge VAT due in the EU country of supply. This means that if your Danish customer is a VAT registered business, you will charge VAT in Denmark. If your Danish customer is not a VAT registered business, you will charge VAT in the UK.  

For more information, visit GOV.UK   

I am a Scottish lawyer, based in the UK, I sometimes work in France and other European counties, where do I find out about tariffs for services that I’m supplying to France and other EU countries? 

From 1 January 2021, lawyers must take action to ensure their professional qualifications are recognised by the relevant regulators in France, and the other countries you work in. You can find information on doing this on GOV.UK.  

Further guidance on providing services in France from 1 January 2021 

There are no tariffs on services, but there is VAT. If you are a business based in the UK, the place of supply of your services is the EU, and your customer is a VAT registered business, you must charge VAT due in the EU country of supply. This means that if your French customer is a VAT registered business, you will charge VAT in France. If your French customer is not a VAT registered business, then you will charge VAT in the UK.  

More information on VAT place of supply of services from 1 January 2021 

I am a Scottish consultant working in the financial services, advising businesses on investment. I do consultancy work on a temporary basis for businesses in Spain. What should I do to get ready for 2021? 

From 1 January 2021, consultants providing financial services into Spain must ensure their professional qualifications are recognised by the relevant Spanish regulator.   

You will need to establish contact with the Spanish contact, about how to get your professional qualification recognised in that country, as well as regulations you must adhere to.  

Find the Point of Single contact 

For more information on providing services in, or working, in Spain from 1 January 2021 visit GOV.UK   

A Spanish E-government portal  can be found online. This is where you can direct your specific enquiries about providing your business services to Spain.  

If your business has more than one establishment spread across the UK and EU, you need to determine which of these places is either making or receiving the supply of services. 

What are the tariffs for services, rather than products?

There are no tariffs on services, but there is VAT. If you are a business based in the UK, the place of supply of your services is the EU and your customer is a VAT registered business, you must charge VAT due in the EU country of supply.

If your EU customer is not a VAT registered business, then you will charge VAT in the UK.

Read the VAT place of supply of services notice on GOV.UK 

I have professional qualifications and export services to the EU - how will I be impacted?

You may be impacted, as different EU member states treat individuals with UK-originating professional qualifications differently as of 1 January 2021.

Regulated sectors of services industries are currently relying on mutual recognition of professional qualifications (MRPQ). These qualifications will need to be officially recognised for a person to be able to work in a regulated profession in the EEA or Switzerland.

If your qualification has already been officially recognised by the relevant regulator in an EEA country or Switzerland, this recognition will remain valid post-Brexit.

For more information, visit cbi.org.uk or see section 8 of What will Brexit mean for sectors?

How will the Border between GB and the EU work for traders, hauliers and passengers from 1 January and what actions are needed?

You can access information about the Border Operating Model, and the changes needed to operate after Brexit on GOV.UK. 

How will Freeports operate?

Setting up Freeports is a work in progress, and many operational details are not yet confirmed.

The UK government has plans for 7 or more established English ports to become Freeports. Ports across England can apply for the Freeport status, to turn sea, air and rail ports into trade hubs. The UK government is working with the devolved administrations to develop proposals to allow Freeports to be created in Scotland, Wales and Northern Ireland, in addition to those in England. Bidders need to submit bids by Friday 5 February 2021, and these will be assessed by a MHCLG chaired assessment panel in March 2021, with decisions made in the Spring of 2021.

Further information on the Freeport bidding process

What do HGVs travelling via the Port of Dover or Eurotunnel need to consider? What is the Kent Access Permit?

Two important actions for HGV drivers or designated hauliers going via Dover or the Eurotunnel.

• They must use the ‘Check an HGV service’ for HGVs
• They must use the 'Check an HGV service' to obtain a ‘Kent Access Permit’ before the HGV travels through Kent

Even when an HGV is empty or carrying post, the driver must still declare this on the ‘Check an HGV service’ and obtain a valid KAP (Kent Access Permit).

There will be fines issued to those who do not have the permit but have joined the vehicle queue.

Access the GOV.UK driver checklist for those transporting goods from the UK by road

The UK and the EU have agreed on the rules for transporting goods between GB and the EU, you find guidance at GOV.UK

Additionally, a new Goods Vehicle Movement System (GVMS) has been put in place. The system links the goods being moved with customs declarations, to references in the system. This allows clearance processes whilst the vehicles are travelling, so that arrivals and departures will be processed electronically in close to real-time.

Can we import to various EU countries Delivery Duty Paid (DDP) with a VAT registration in just one EU country?

No. Every EU country issues its own national VAT number. It is most likely that a VAT number will only be required if import VAT is payable upon EU importation.

A VAT number is required for the deferment of VAT and it depends on where the import customs declaration is made, e.g. either the first point of entry in the EU, or at the country of arrival.

A UK business supplying goods or services in several EU countries, may be liable to get VAT numbers for either the first point of entry, or the country of arrival, or both, depending on where it is to be paid.

More information on EU VAT rules can be found at europa.eu 

As a manufacturer we import components from the EU, are there likely to be tariffs on these components?

The UK and the EU have signed a Free Trade agreement that regulates trade between the two parties, from 1 January 2021.

Whilst the UK-EU FTA does remove tariffs on goods, to continue trading with the EU tariff-free you will need to comply with the agreement’s RoO. It is essential that you understand these rules and that you and your suppliers know where your materials or ingredients come from. Product Specific Rules are specified in the UK-EU FTA and you need to understand how this impacts on your ability to trade and your supply chains.

Understanding VAT after Brexit

How does the One Stop Shop (OSS) and Import One Stop Shop (IOSS) work?  How do we register and how much does it cost?

The VAT Mini one Stop Shop (MOSS) is a EU VAT scheme which allows specific businesses to account for VAT that would normally be due in multiple EU countries, in just one EU country, when supplying digital and telecommunications services from one EU country into another, where the business has no business establishment.

These specific businesses services include: television and radio broadcasting, as well as website hosting, supply of software, access to databases, downloading apps or music, online gaming and distance teaching.

As of 1 January 2021, these UK businesses cannot use the EU VAT MOSS system to pay VAT due in EU countries.

For UK businesses to continue to use EU VAT MOSS from 1 January 2021, they must register for the VAT MOSS scheme in an EU country. To check whether you should register for the EU or UK MOSS, and who to contact for VAT MOSS in the EU, visit europa.eu. The EU-wide VAT threshold for supplies of digital services to consumers will not apply to UK businesses. EU VAT will be due on all supplies of digital services to EU consumers, regardless of the value of the sales.

GOV.UK guidance on changes to VAT MOSS rates for other countries 

How do we get an EU VAT number for Delivery Duty Paid (DDP)?

Find out about the changes to VAT relating to the EU from 1 January 2021 on GOV.UK.

Further information on EU VAT numbers and how they work 

What are the EU VAT changes from 1st January 2021? 

GOV.UK guidance on VAT changes 

Changes to VAT treatment of overseas goods sold to customers from 1 January 2021;

As of 1 January 2021 the VAT rules that apply for the supply of services between the UK and EU are the same as the rules that apply for the supply of services from the UK to non-EU countries.

From 1 January 2021, online market places (OMP) must register for UK VAT in order to account for VAT on their supplies. You also need to register if you sell goods directly (without using an OMP to facilitate your sales) to UK consumers and the goods are outside the UK at the point of sale.

Since 1 January 2021 the distance selling threshold for sales from EU member states no longer applies. There is no VAT registration threshold for businesses established outside the UK so you are required to register for VAT on any value of sales where you become liable for VAT under these new measures.

Zero-rated VAT on goods exported to the EU or rest of the world;

When goods are exported they are ‘consumed’ outside the UK. Therefore, the supply of exported goods is zero-rated, provided certain conditions are met. 

Accounting for VAT on goods moving between Great Britain and Northern Ireland from 1 January 2021

Potential solutions to VAT issues: Customs special procedures

What are the tariffs for services, rather than products?

There are no tariffs on services, but there is VAT. As of 1 January 2021, VAT rules applicable to the supply of services between the UK and EU member states are the same as rules that apply for the supply of services from the UK to non-EU countries. If you are a business supplying services to a customer located in an EU member state, either registered or non-registered for EU VAT purposes, you don’t charge VAT, meaning the customer is responsible for paying VAT in their country.

You can zero rate some services, such as the supply of the making of arrangements for:

• The export of any goods to a place outside the UK and outside the EU
• Supply of services which is itself zero-rated as work on goods for export from the UK or EU
• Any supply of services which is made outside the UK or member states

Zero rating applies to the actual making of arrangements for eligible supplies. It does not extend to services which simply facilitate supplies.

There are some UK services to the EU which do charge VAT, for example:

• Hiring transport
• Land or property services (for example, valuing property, agricultural work or repairing a building)
• Events
• Restaurant or catering services
• Physical services you do to someone else’s goods like manufacturing, cleaning or making alterations
• Services where you act as an intermediary such as being a broker or agent
• Digital services

Guidance on VAT supply of services to the EU

How do I find out the commodity codes for my goods?

You can find the commodity codes for your goods using the GOV.UK tariff checker. 

As of 1 January 2021, the UK uses the UKGT, this is the new UK Global Tariff.

If a product is manufactured in the UK using EU-sourced materials, does that qualify towards meeting Rules of Origin?

Any EU-originating materials and processing will be treated the same as UK-sourced material for the purposes of Rules of Origin (and vice-versa).

To count towards meeting Rules of Origin (cumulation), materials must originate in the EU or UK. While EU-originating materials can count towards meeting Rules of Origin, the processing or manufacturing done in the UK must go beyond insufficient processing for the goods to attain originating status.

The full list of processes which do not confer origin can be found in Article ORIG.7 Insufficient Production, in the TCA.

Will I face a tariff if I send goods to the EU for repair?

Businesses can apply for Outward Processing Relief, which allows you to pay less customs duty and VAT when goods re-enter the UK.

Both the UK and the EU will be retaining their existing Outward Processing Relief regimes. 

You can also use inward processing relief to pay less customs duty and VAT when bringing goods into the UK for processing or repair. 

For items originating from the EU - what impact does Rules of Origin have for onward trade to NI?

If you are sending EU origin goods from Great Britain to Northern Ireland, you must first determine if the goods are considered 'at risk' (of entering the EU). If they are not ‘at risk’ or you can declare the goods not ‘at risk’ through the UK Trader Scheme, no tariff will be due.

Traders could consider using customs procedures to mitigate the tariffs due on entry to NI for ‘at risk’ goods. These procedures include the Transit Procedure (where the goods are moving through UK customs territory), Customs Warehousing (where goods are stored in duty suspension in a designated warehouse under customs control) or Returned Goods Relief procedure (for goods re-exported to the EU).

The new Trader Support Service (TSS) can help you understand the options available to mitigate the risk of paying any tariffs when moving goods into Northern Ireland from Great Britain.

What if our supply chain cannot trace the precise location of their raw materials because they are sourced from all over the world?

Goods are typically considered to be non-originating unless proven otherwise. However, you need to check the product-specific rules for the product in question - tracing of materials would only be needed if you could not meet a process-based rule through the activity you carry out in the UK.

As with any Product Specific Rule, the processing or manufacturing done in the UK must go beyond insufficient processing (see Article ORIG.7 Insufficient Production in the TCA).