Businesses trading internationally, or with suppliers based across Europe, are likely to already be aware of the new legal requirement requested of them by the UK government.
From the 1st of January 2021, businesses based in Great Britain must supply an EORI number to both export and import goods into the European Union. Whether you’re just starting your business, you’re looking to start one, or you already own an existing business working in international space it can still seem complex and confusing.
We’re here to help. In this blog we’ll answer what is a company EORI number, as well as a whole host of other commonly asked questions to give business owners the rundown on the latest steps they need to take to Brexit-proof their business.
(Source)
Related Reading: What more do businesses need to know about Brexit? Find out in our comprehensive guide.
What is an EORI Number?
An EORI number, full term Economic Operator Registration and Identification Number, is a unique ID code which is used to register and keep track of customs information, such as traders declaring imports and exports in the European Union.
What is the format of an EORI number?
An EORI number looks like a country code, followed by a series of digits which are unique to the organisation. For example, for businesses registered in Great Britain the number appears as follows:
- For VAT registered businesses: GB and VRN (VAT Registration Number) followed by 000
- For Non-VAT registered businesses: GB followed by a unique HMRC issued number
Some UK customs systems can only be accessed by EORI numbers starting with GB, so it is worth checking the details of such systems to ensure your business is correctly registered.
Businesses moving goods between Northern Ireland and non-EU countries also require an EORI number, but the number will begin with XI.
To acquire an EORI number beginning with XI, businesses must already have an EORI number beginning with GB.
If a business was not automatically sent their EORI number, applications are now open online where a business can apply for both an EORI number beginning with GB and one beginning with XI at the same time. Numbers are sent within four working days.
Why do I need an EORI Number?
If you import or export from the UK into Europe, your business will need an EORI number to be able to successfully move importations and exportations through EU customs.
Without an EORI number your business may be unable to export or import goods from the EU legally, and could face increased costs (like storage fees) and delays.
EORI numbers are mandatory because they are assigned and recognised by EU customs authorities as unique identifiers of the business which is attempting to either export or import from outside the European Union.
However if your business only deals in digital services, then you will not need an EORI number provided there are no tangible goods being exported or imported through customs systems.
If your business only imports and exports goods between Northern Ireland and the Republic of Ireland you also do not require an EORI number.
Is the EORI number the same as the VAT number?
Your EORI number is not the same as your VAT number, but if you are VAT registered the two will link. When applying for your EORI number as a VAT registered business, HMRC will automatically link all your imports and exports to your VAT number.
If you are VAT registered your EORI number also serves as an extension of your VAT number. Your EORI number is prefixed with GB and will end in 000 as usual, but your VAT number is filled in in between. Despite this, an application for an EORI number must still be filled out.
Related Reading: EORI Numbers aren’t all businesses need to be aware of in the Brexit transition period. Postponed VAT Accounting is now active. Read more about PVA here.
(Source)
How to apply for an EORI Number
For businesses based in the UK, the correct paperwork must be completed in order to receive an EORI number. Documentation varies depending on the business circumstance, but the initial steps to take are:
- To visit UK Government Website and locate the EORI information page
- Within the page, choose the form that suits your business needs. These are predominantly based on your business type and location.
- Complete and then submit the form electronically
- Within a week you will receive an email containing your EORI number
- Send your EORI number to your freight partner for use across customs declarations.
If your business is not based in the UK, e-learning resources are provided by the EU and can be found here.
Choosing the Correct Application Form
As we mentioned above, depending on your business type, location and circumstances depends on which type of form you need to fill in. We’ve broken these down into categories for easier navigation below:
Business registered for VAT:
Businesses registered for VAT in the United Kingdom need to fill in this form.
Businesses not VAT registered and Exporting:
Business which are:
- Not VAT registered in the UK
- Exporting goods to a country outside of the EU
- Exporting goods for commercial use
Must fill in this form.
Businesses not VAT registered and Importing:
Businesses which are:
- Not VAT registered in the UK
- Importing goods from a country outside of the EU
- Importing goods related to commercial use
Must fill in this form.
Please note that the above application forms are solely for the use of companies using either courier services or freight forwarding services to export or import their goods.
If you are a sole trader, or for any other reason you will be applying for an EORI number to complete customs declarations yourself, you will require a different form. Those looking to use the CHIEF (Customs Handling of Import and Export Freight), NES (National Export System) or NCTS (New Computerised Transit System) systems should use this application process.
Find out when your business should apply for VAT here.
What information is needed to apply for an EORI number?
Online application processes for EORI numbers are straightforward, but just like the application forms, depending on the businesses location and circumstances different businesses will require different information to be on hand.
It should be noted that details must be given of any shipments businesses are intending to import or export out of the EU, and that the form cannot be completed ahead of time. If the information is skipped, the application is likely to be rejected. Here’s the information different businesses will need depending on their circumstances:
Businesses registered for VAT:
- The applicant’s full name
- The position held in the business
- Contact details of the applicant
- The VAT Registration Number
- The VAT Registered Name
- The registered VAT address
Businesses not VAT registered and Exporting:
- The registered business name and address
- Contact details of the applicant
- The legal status of the business and any subsequent necessary information
- A description of the businesses goods, quantities and values
- The delivery address and the freight agent name (if known)
- The method of export
Businesses not VAT registered and Importing:
- The registered business name and address
- Contact details of the applicant
- The legal status of the business and any subsequent necessary information
- A description of the businesses goods, quantities and values
- The address of the supplier and the freight agent name (if known)
- The method of import
The UK Government website will list the start date of your business, as well as your Standard Industrial Classification (SIC) code, your Unique Taxpayer Reference (UTR) and your Government Gateway user ID plus your password. Individuals and sole traders must also make sure they have their National Insurance number.
Running a Limited Company and wondering if you need an accountant? Read the reasons why you should probably have one in our blog.
How to find an EORI number
To find your EORI number you can contact HMRC’s EORI team by filling out their contact form.
It is worth noting that data protection regulations across the EU, such as GDPR compliance means that data on a registered company may not be accessible if the company has not consented to make their data available in the public domain.
You can also find an EORI number by checking the EORI number validator. A company registered for VAT may have already been issued an EORI number automatically, which means that if a company is struggling to locate or apply for their number, they may already have been issued with one.
To conclude:
Businesses wanting to import and export their goods across the EU should obtain an EORI number. Applications opened from the first of January 2021, so if your business has not yet been issued with a number, and you cannot find a number on the number validator, make sure that you visit the EORI page on the government website to complete your application.
The Brexit transition can be complicated, but at iFinance Department we’re here to make things simpler. We can help with all aspects of accounting and bookkeeping for small businesses, including VAT and taxes. Talk to us today to find out how we can help your business.