United Kingdom HMRC's VAT Measures update: What You Need to Know
Date of publication: September 30, 2024
Introduction
To streamline and simplify the tariff system, His Majesty's Revenue & Customs (HMRC) has announced a significant change to the way VAT measures are displayed. Currently, VAT measures are shown in two separate geographical areas. However, moving forward, HMRC will consolidate these into a single geographical area (1400). This change will encompass imports from all countries, including Jersey and Guernsey, and will be exclusively used for VAT measures.
Implementation timeline
The changes are scheduled to go live on the Customs Declaration Service (CDS) on September 25th, 2024.
Details of the change
- Current System: VAT measures are displayed in two geographical areas.
- New System: A single geographical area (1400) will be used for all VAT measures.
- Affected Areas: This change will cover imports from all countries, including Jersey and Guernsey.
- Transition: On CDS, VAT measures against geographical area 1011 will be closed on September 24th, 2024, and the replacement measure using geographical area 1400 will open on September 25th, 2024.
Impact on software houses
Software houses must be aware of the changes to the geographical area code 1400. This update is crucial for ensuring that systems are aligned with the new tariff simplification measures.
Conclusion
This merger of geographical areas is aimed at simplifying the tariff system. Importantly, there are no changes to the VAT coverage in the tariff. The consolidation into a single geographical area is purely for simplification purposes, making it easier for users to navigate and understand the tariff system.
Recognizing the importance of these changes for our clients, we have already made them available on ONESOURCE Global Trade Content (GTC). For more information on how ONESOURCE Global Trade solutions can assist you in adopting our Global Trade Content, please contact your Account Manager or Client Services Manager.