HM Revenue & Customs (HMRC) has advised businesses to start moving to the Customs Declaration Service.
Now we have left the EU, HMRC has said it is important for businesses to check whether they are already using the Customs Declaration Service for VAT purposes so regular updates can be passed on.
The current CHIEF system will close in two phases, with the ability to make import declarations ending after 30 September this year, and export declarations after 31 March 2023.
There are key steps businesses need to take to use the CDS:
Register for a Government Gateway account
You will already have the gateway to access your personal or business tax account.
You should use this account to access the Customs Declaration Service.
Apply for an EORI number
You will need an Economic Operator Registration and Identification (EORI) number that starts with GB. Most businesses moving goods in and out of the UK already have one.
Register for the CDS
This can take up to five working days and you will need the Government Gateway user ID and password for yourself or your business.
You will also need your GB EORI number, 10-digit Unique Tax Reference number, business address, National Insurance number, if you are a sole trader, and the date the business started.
You should authorise your software provider to make declarations on your behalf. This will link your software to your Government Gateway account.
Read the Customs Declaration Service guidance to understand how this impacts the declarations you intend to make.
Choose payment methods
Choose the method which is best for the declaration.
Balances and payments can be viewed in the Customs Declaration Service Financial Dashboard, which can also be used to authorise and amend payment accounts.
The main payment methods include:
- A duty deferment account which will require setting up a new direct debit
- Postponed VAT accounting – if you are making declarations for yourself and your business is registered for VAT in the UK.
Also available are:
Practise with the Trader Dress Rehearsal service
This allows you to practise submitting declarations and identify any errors and become more confident about using the service.
Software providers should be able to supply access.
Going live
Software providers will request access to the live service using the secure file upload service when submitting supporting documents like licences or certificates of origin.
For help and advice on the CDS or related trading matters, call our team today.