Estonia, EU – Baltic States, Financial Services, Taxation
International Internet Magazine. Baltic States news & analytics
Friday, 29.03.2024, 00:13
Estonian Tax, Customs Board calls for companies trading with Brits to prepare for Brexit
"Activities must be launched both for a situation
involving a no-deal withdrawal as well as for a situation in
which the withdrawal of the United Kingdom from the European Union
takes place on the basis of an agreement and smoothly," said Kulli Kurvits, deputy head of the
customs department of the Tax and Customs Board.
She said that approximately 5,000 Estonian companies have
economic ties in the UK, of which some 3,000 have still not had any contact
with customs. The Tax and Customs Board has created a separate section on its
website that gives information regarding changes accompanying Brexit. "We
will supplement it on a running basis, according to the information that is
received," Kurvits said.
With Brexit, all companies doing business with British
enterprises require a registration number, without which it is not possible to
carry out a customs formalization in the EU or promote foreign trade ties.
"Applying for the EORI number necessary for a customs
formalization online is generally a simple and fast procedure, but one must
take into account the coming time for submitting the income tax returns of
natural persons. As the e-services environment is the same for everyone, we
suggest those in need of an EORI number file the relevant application already
in the next few days. Otherwise, the process of application may lengthen,"
Kurvits said.
Prior to that, companies should also familiarize
themselves with an overview of customs measures from the Estonian Master Tariff
System (EMTS), from which information is available regarding rates of duty and
other additional requirements when trading with third countries.
"We also offer companies the opportunity to apply for
counseling and training regarding Brexit from the Tax and Customs Board,"
Kurvits said.
She also advised that companies think through their
logistical plans for the end of March, as around March 30, when in the event of
a no-deal Brexit the United Kingdom is to become a third country in
relation to the EU, greater confusion is expected both in terms of the
formalization of documents and transport.
According to Kurvits, Brexit should bring the authority additional work in the amount of some 30%.
According to current plans, the withdrawal of the United Kingdom from the European Union is scheduled to take place at midnight on March 29, meaning that starting from March 30, the UK would be a so-called third country in relation to the EU and a customs formalization would be necessary for any kind of movement of goods between the UK and the EU.