Caitlyn Buchanan, 17th September 2020
Covid-19 has been somewhat of a distraction overshadowing the imminent final chapter of Brexit. The transition period will conclude on 31st December 2020 and the United Kingdom will leave the European Union regardless of whether a trade deal is reached. Irish companies must take steps now to prepare for Brexit.
This week, businesses will begin receiving letters from Revenue with information and steps that will need to be taken to become “Brexit ready”. Approximately 90,000 Irish businesses are expected to be impacted by Brexit and will be contacted by Revenue. However, even if you are not contacted by Revenue this article outlines the upcoming changes and steps Irish Companies must take prior to Brexit.
Irish Company Director Requirements
For many UK businesses, having an Irish registered company is an ideal solution to maintain operations and trade within the EU. Under company law, Irish Companies are required to have at least one director who is a resident within the European Economic Area (EEA). Any Irish company with only UK resident Director/s, will need to be pro-active in their Brexit preparations.
Please note: Nationality is not taken into consideration, only residency, so even an Irish national director who is a tax resident in the UK will not meet this requirement.
Irish companies have until the end of 2020 to action one of the following three options to ensure compliance with the Companies Act 2014:
1. Appoint another director who is a resident in the EEA;
2. Put in place the Section 137 Revenue Bond; or
3. Provide a ‘Real & Continuous Link‘ to the state. Please note this option will require Revenue approval and several Irish-based employees.
Company Bureau can assist you to implement the required action for your company whether you need to add a company director, organise an Irish resident director or secure a Revenue Bond.
If you are a trader who imports or exports goods into or out of the European Union, you will need to obtain an Economic Operators Registration and Identification (EORI) Number. This Brexit preparation applies to both Irish and UK traders who trade with each other will need to apply for an EORI number prior to Brexit. An EORI number is valid throughout the EU and used as a common reference number for interactions with the customs authorities in any Member State. Irish Revenue uses the number to identify businesses or individuals and collect duty on goods.
If the business was previously registered for Customs and Excise (C&E), it may already have been allocated an EORI number. Some traders may have also been automatically registered for an EORI number by Revenue. Before applying for the EORI number you should check if you were automatically registered on the Economic Operator Identification and Registration system. Search “IE” followed by your VAT/Tax Registration number.
If a number has not been automatically allocated you can apply for an EORI number on Revenue’s EORI online registration service through ‘My Account’ or ‘ROS’.
New National Import System (AIS) from November 2020
The new Automated Import System (AIS) will replace the existing systems for businesses that import goods from outside the EU from November 2020. The existing Automated Entry Processing AEP and eManifest import systems will be replaced. This new AIS System will ensure that businesses can legally import goods from outside the EU using efficient processes. This will significantly change the structure and content of the import declaration by introducing new electronic message formation as well as new data fields.
Businesses will need to ensure their current software systems are updated to meet the change in requirements. Be sure to liaise with your IT team or external systems provider to make the necessary arrangements. Full technical details and Guidance are available on the Revenue website. Additionally, those using a customs agent will need to contact them to ensure you are both prepared for the changes in procedures. For example, importers will need to lodge import declarations using AIS and determine the collection of information required by the new data fields.
From November 2020 it will no longer be possible for businesses to import goods from outside the EU into Ireland using old systems. The AIS system will need to be implemented to ensure businesses are ready for the changeover. Staff will also need to be familiarised with the content and structure changes of the new declaration.
Brexit preparations for Irish companies must be completed before 1st January 2021, when Brexit will become a reality. If you have questions about Brexit preparations for Irish companies or if you would like information about forming an Irish Company as part of your Brexit strategy, please don’t hesitate to Contact Us today or call +353 (0) 1 6461625. The Company Bureau team. We would be happy to discuss the options with you in detail.
Disclaimer This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.