Transitional Simplified Procedures - auto enrolment of qualifying VAT registered businesses
HMRC has announced simplified import procedures called Transitional Simplified Procedures (TSP) that will come into effect when the UK leaves the EU on 31 October. For businesses new to customs processes this is the best option for them.
As you may be aware, on 15 October 2019 we announced we are in the process of writing to around ninety five thousand VAT registered businesses to notify them that they have been registered for TSP.
This population have been sent a letter (a copy is available via the link) to let them know that we have registered them for TSP.
TSP will allow them to import goods from the EU to the UK without having to make full customs declarations at the border or pay import duties they owe straight away.
To move goods from the EU into the UK using TSP they will need to:
- be established in the UK and meet the eligibility criteria
- keep records of their imports, and be prepared to make monthly supplementary declarations to HMRC
- check the tariff rates on imports to find out if there will be any customs duties to be paid
- apply for a Duty Deferment Account, which will allow them to pay duties owed on goods monthly rather than as soon as the goods enter the UK.
For more information about TSP and record keeping, go to www.gov.uk/hmrc/eu-simple-importing
If businesses are not VAT registered and they import goods, we recommend they apply for TSP.