Brexit is imminent! What preparations should FBA sellers make? You can apply for EU EORI number now!

Brexit is imminent! What preparations should FBA sellers make? You can apply for EU EORI number now!

On January 31, 2020, the UK officially left the EU and entered an 11-month Brexit transition period, although negotiations between the UK and the EU are still ongoing (including determining the specific tariffs applicable in different situations).


From January 1, 2021, customs duties will be paid between the UK and other European countries; the EORI number was originally used in the EU. After Brexit, sellers in other countries must also register for the EORI number.


The countdown to Brexit has begun. Sellers who have applied for and registered EORI numbers in the UK can now apply for EORI in Germany, France, Italy and Spain.



What should FBA sellers do to prepare after Brexit ?

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1. Ensure that there is inventory in the UK and the EU.

You can split your inventory and send it to the UK and the EU respectively to protect sellers' sales in the UK and the EU and ensure that there is sufficient inventory on both sides of the new border that will take effect on January 1, 2021.

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2. Prepare VAT number.


To transport goods across borders and store them locally, you will need a VAT number for the country where the goods are stored.

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3. Obtain an EORI number.


EORI stands for Economic Operators Registration and Identification. This number is a registration number required for any individual or company that has economic activities, especially import and export business, in the EU. If a seller wants to import goods to the UK in the name of the importer and then refund the import tax (IMPORT VAT) (only for merchants with VAT numbers), he must submit this EORI number to the customs.





EORI is very similar to the EU tax number, the format is: country code + number (EU tax number, domestic tax number, number)

UK EORI No.: GB123456789000 (EU tax number +000)


Germany EORI No.: DE123456789123456 (number)


French EORI No.: FR12345678944456 (country code + SIRET number)


Registration time: 3-6 weeks (Germany)



Ask a Question

Qustions

&

answer

Answers

Q

What is the difference between EORI and VAT?

A

EORI is used in the import declaration process and is valid throughout the EU. VAT is the value-added tax number, which is used in the business process within the EU and needs to be registered in different countries according to different situations.

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Q

UK applies for EORI so quickly, can I ship first and then apply for EORI at the same time to save time?

A

No, the registration time is just an average time, and you cannot guarantee that there will be any problems during the registration process that will cause delays. In this way, your imported goods will be detained at the customs and incur costs.

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Q

Can I borrow someone else's EORI to import?

A

No, this is not compliant because the EORI and VAT numbers filled in during importation must match. If you borrow someone else's, your tax agent will not receive the C79 document and will not be able to use the import VAT you paid to offset the sales VAT.

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Q

Can UK's EORI still be used after Brexit?

A

It can be used in the UK. If you want to import it into the EU, you will need to register a new EU EORI.

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(Source: Cross-border Black Technology)


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