Session 2d

TRAFALGAR SESSION 2D

Living with VAT and customs in a post Brexit world

SIMON ANSLOW

Partner at VAT Services PKF Francis Clark

BIOGRAPHY

Simon heads up PFK Francis Clark’s VAT, Customs & Indirect Tax Team. A broad experience of industry sectors and working with businesses from start-ups through to multinationals enables Simon to provide informed advice and guidance and offer practical solutions and options, from basic compliance and efficiency management, through to complex planning and dispute resolution.

A 15-year career with HM Customs & Excise included investigation activity, legal advocacy and the obtaining of considerable technical and practical experience. Simon switched sides some years ago, firstly as a partner in a mid-tier firm and more latterly as a regional VAT director with a Top 10 practice, before joining Princecroft Willis, the predecessor firm of PKF Francis Clark, in 2009 to head up their VAT service.

Land, property and construction matters present significant and ongoing VAT issues and Simon has considerable experience in assisting developers, construction firms, landlords and legal advisers in the residential, commercial, healthcare and holiday sectors.

An area of particular expertise is that of the marine sector; Simon heads up the Indirect Tax Marine Team that provides the VAT & Customs advisory services to British Marine and its members; a former chairman of British Marine Wessex, Simon remains an active member of the committee and provides ongoing technical assistance to the Insurance Legal Financial Services Association arm of the British Marine Federation. Simon also works closely with sailing and training academies, the UK America’s Cup team, yacht clubs, brokers, boat builders and all areas of the marine sector, whilst maintaining a healthy working relationship with HMRC’s Marine & Pleasurecraft teams to ensure that our clients can receive the best possible service. Simon’s approach is very much about working with the client and what they need, his philosophy being “Taking it back to basics, to understand who does what, for whom, when, where and for how much – first we make it right, then we make it better”. When not plying his trade in the dark arts of VAT, Simon can be found spending time indulging in his other passions – family, films, food and all things cars!

INTRODUCING GAC PINDAR

9 GAC employs 9,500+ people 300+ offices worldwide 9 GAC Pindar is a marine sport, leisure and event logistics provider & part of GAC UK 9 Headquartered in Southampton 9 Trusted to deliver complex logistics services for some of the world’s biggest sporting events like The Ocean Race 9 Handle customs declarations around the world 9 We are a UK Approved Economic Provider 9 Badges for all UK inventory-linked ports 9 Customs support / in house training

CUSTOMS IN 2022 – WHAT’S CHANGED?

9 Export clearance & checks from Jan 1st 9 Import clearance & checks from Jan 1st 9 Changes to Port Operating Models 9 Temporary Storage 9 Pre-lodgement 9 Bespoke 9 System changes – GVMS, S&S GB

WHAT SHOULD BE IN PLACE?

9 Know your INCO Terms - https://iccwbo.org/resources-for-business/ incoterms-rules/incoterms-rules-2010/ 9 EXW – Ex Works 9 FCA – Free Carrier 9 DPU – Delivered at Place Unloaded 9 EORI number 9 Direct / Indirect & Fiscal Representation

WHAT PAPERWORK IS NEEDED?

9 Transit Documents & ATA Carnets 9 Commercial Invoices 9 Packing Lists 9 Understand what is required 9 Check the information needed

MAKE THE SYSTEM WORK FOR YOU!

9 Plan your movements in advance 9 Take advantage of speed, cost levels & controls 9 Consider the whole picture 9 Engage with buyer & seller 9 Check customs brokers are in place 9 Agree on INCOTerms 9 Check route, ports & registrations 9 DON’T try to avoid or skip around the system 9 Engage experts to assist

VAT / CUSTOMSLIFE IN A POST BREXIT WORLD – BOATS!!

VAT / CUSTOMS – PLEASURECRAFT: THE ISSUES

9 VAT Paid Status (VPS) 9 Movement 9 Buying / Selling

VAT / CUSTOMS – PRE-BREXIT

9 Free Movement: UK EU 9 Free Circulation: VPS 9 Buying / Selling: • Place of Supply Rules • Potential EU VAT Registration, but… • ...reasonably lax

VAT / CUSTOMS – POST-BREXIT

VPS

9 NO Grandfathering 9 NO Moritorium

9 NO Agreement

MOVEMENT

9 UK EU27 = Export / Import 9 VAT / Duty… 9 …Relief Applies: • RGR [Returned Goods Relief] • TOR [Transfer of Residence] • TA [Temporary Admission] • Customs [Warehousing, IPR etc]

VAT / CUSTOMS – POST-BREXIT Movement - Reliefs

9 RGR • VPS < Departure • Boat Returns: - Same Ownership - No material change - Within 3yrs • UK - Departure From UK NOT EU - 3yr Rule - ≤ 30/6/2022 From EU27 - ≥ 1/7/2022 Anywhere 9 THE BIG ISSUE • UK Owners • Purchased EU27 • Not UK pre-Brexit x NO UK VPS x NO UK RGR

Movement - Reliefs

9 TOR • Ex-UK resident ≥12m • Includes pleasurecraft - Owned ≥6ms importation - Imported within 12m of UK residency - Evidence of VAT/Duties/Tax (or relief) - No sale / letting / disposal within 12ms UNLESS HMRC agrees

Movement - Reliefs

9 TA

• Owned ex- territory • Flagged / Registered ex-territory • Private use only • Must exit within 18m of arrival… • …but can re-enter and restart the clock

Business

9 Boat Sales • PoS = where the boat is • Issues: - New boat sales EU27 - Part-exchange / VPS - EU27 / UK Movements - EU27 Imports vs VAT Recovery / Duty (INCOTERMS…) - EU27 VAT Registration: - Non-established - EU sub

VAT / CUSTOMS – POST-BREXIT

But Is It All Bad…?

9 UK Sales + EU27 TA = VAT Free! 9 Inbound EU27 VPS + Previous Owner = RGR…? 9 UK Boatyards + IPR + Inbound Boats = Z/R Works 9 UK HMRC + Lobbying + Enlightenment = Repatriation Relief…maybe!

PAT TREANOR

Commercial Manager at Customers and Fiscal Services, GAC UK

BIOGRAPHY

Pat spent 12 years as a freight forwarder in front line operations with five of those years devoted to building a successful operations team as manager. In the years running up to Brexit, Pat worked closely with business partners, suppliers and clients to best prepare their businesses for the changes ahead. At GAC UK Pat joined a busy in-house Customs and Fiscal Team, to assist and support 20+ offices across the UK with the implementation of the new customs procedures. He is focused on applying strategies and driving processes to ensure best practise across our business and accurate advice is given to our customers.