Can I take this opportunity to add something.
As far as the way that import and export transactions between the EU and the UK are concerned, things changed on Jan 1 2021. Personally, I actually find that it makes life easier for me as it is all now treated along with the normal deep-sea/non-EU transactions.
I paste below a copy of the advice which I have received verbatim:-
Changes to VAT Reporting from 1st January 2021
Please note the following changes to UK VAT Reporting from 1st January 2021.
These changes apply to UK businesses that trade with the EU.
Exports to the EU
From 1st January 2021 exports of goods to the EU are zero-rated (0%) for VAT. They are reported as normal in Box 6, but are no longer reported in Box 8, unless the sale is through the Northern Ireland protocol.
Imports from the EU
From 1st January 2021 imports of goods from the EU are zero-rated (0%) for VAT by your supplier. They are reported as normal in Box 7, but are no longer reported in Box 9, unless the import is through the Northern Ireland protocol.
VAT will be added to your invoice by border control, and this is usually handled by your courier or agent.
In order to reclaim the VAT charged, you must register for an EORI number, and provide this to your courier / supplier. You will receive a C79 form from HMRC and must keep this as evidence of VAT paid.
In order to reclaim VAT charged on your imports, include the VAT you have been charged on imports in Box 4. You must also include the value, excluding VAT, of the imports in Box 7.
Postponed VAT Accounting
Postponed VAT Accounting (PVA) allows you to account for, and reclaim, VAT on imported items yourself, rather than through a third party such as a courier.
In order to use PVA, you must:
- Inform your supplier you are VAT registered, and wish to use Postponed VAT Accounting*
- Import business goods to the UK valued at more than £135 (exclusive of VAT)*
- Elect to use PVA on the customs declaration*
- Use your own VAT registration and EORI numbers on the customs declaration*
If you have used PVA to account for VAT on imports, you can account for this as in your VAT Return by entering adjustments in your accounting software or spreadsheet as follows:
- Box 1: Include the VAT due on imports*
- Box 4: Include the same value as for Box 1 - so you are reclaiming the VAT due.*
These figures will be available for up to 6 months from the monthly HMRC PVA report, available at: Get your postponed import VAT statement - GOV.UK
Northern Ireland trade with the EU
If you exchange goods between Northern Ireland and the EU, you must file adjustments to account for the VAT as follows:
- Box 2: Enter an adjustment for the VAT due on acquisitions of goods made in Northern Ireland from the EU*
- Box 4: Enter the same adjustment as for Box 2 - so you are reclaiming the VAT due in Box 2*
- Box 8: Enter the value of dispatches of goods and costs, excluding VAT, from Northern Ireland to the EU*
- Box 9: Enter the value of acquisitions of goods and costs, excluding VAT, from the EU to Northern Ireland*