New customs and tariff rules are concerns for NI businesses

Nearly half (48%) of participants surveyed by the firm said they are concerned about the new customs compliance and tariff issues which will be introduced in Northern Ireland from 1st January 2021 given that their importing and/or exporting activities haven’t previously been subject to customs.

Changes to the VAT rules in goods (19%) and uncertainty around continuing access to EU Free Trade Agreements (17%) also represented significant concerns for some companies who took part in KPMG’s recent webinar ‘Preparing for VAT and Customs Changes’.

In response to a question around the level of Brexit preparedness, a total of 27% said they are awaiting further clarity around how the Northern Ireland Protocol will apply before commencing any Brexit preparations while just under half (48%) have at least begun basic preparations such as setting up Brexit working groups and reviewing supply chains.

Johnny Hanna, partner in charge, KPMG, said, “While there is still the possibility that some type of ‘technical extension’ to the transition period might be agreed on the 11th hour, if a deal is on the table, it is essential that Northern Ireland businesses carry out as much planning and operational readiness as possible before 1 January 2021, notwithstanding the fact that several key issues concerning operational aspects of the NI Protocol are still to be clarified”.

Frankie Devlin, Indirect tax partner at KPMG, said: “It is unsurprising that Customs and VAT compliance are a real worry for Northern Ireland businesses as they prepare for the end of the transition period. The changes to both are complex and require in-depth analysis on a case-by-case basis to ensure disruption to trading is minimised from 1st January.”

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