Brexit was a major game-changer in the European business, which took place in January 2020. Additionally, a UK-European trade deal was reached at the end of December that same year. Since then, all businesses in Great Britain and export their goods to or from the EU are now required to have an Economic Registration and Identification number (EORI).
Are you having trouble applying for an EORI Number? Or better yet, do you know how to apply for an EORI number? Read this article, and you'll get the answers to all frequently asked questions about the EORI number.
What Is an EORI Number?
I'm sure you are probably wondering what an EORI number is. In simple terms, an EORI number is a business identity that will allow you to import or export goods to other countries. The EU EORI number is used to complete the customs formalities. It also acts as an identity that most customs authorities will use to identify exporting or importing goods and products.
However, before Brexit, most businesses didn't need the EORI number. As a member of the EU, the UK was also part of the free-trade region. More importantly, the EORI number was only for businesses trading with non-EU countries, also known as Third Countries. The number typically starts with GB and also includes 12-digits. However, the EORI number includes more digits.
Do You Need an EORI Number?
If you have a business that exports and imports goods to any EU countries, or North Ireland, you need an EORI number. Whether your business is a sole trader, big company, or partnership, you still need an EORI number. However, there are notable exceptions. For instance, if your business is located in Northern Ireland and only trades with Ireland, there's no need for an EORI number. But it's advisable to get this number just if you end up trading with other countries.
More importantly, if you already have it, you won't need to get an EORI number again except that the existing number doesn't start with GB; you might have to apply for a new one.
How to Apply for an EORI Number?
The EORI number application process is relatively easy. But if you don't know where to start, then I'll take you through the process, step by step. First, you will have to identify if you need the EU EORI number. After that, you will fill an online form and submit it to the HMRC.
This section can only be accessed via the Government Gateway Account, which is the same account that you will use to submit your tax return. Click here to access the EORI application form. More importantly, if you have VAT registration, the EORI number will typically act as an extension of your VAT number. But you will still need to apply for it if you are importing and exporting goods. Whether it's by sea or air freight, you must apply for an EORI number.
All you have to do is fill in the form or get someone to assist you with the process. Yes, you heard that right! Several virtual assists could help you with this section if you have any challenges.
It shouldn't take more than 5-minutes to submit your papers, company details and send the online application. What's more, the process will take around 2-minutes if you have a VAT number. The HMRC will allocate you with the EORI number within a few working days.
Additionally, if you want to know your EORI number's progress, you can also check online on this link. The number will arrive in your email within a week.
Follow the video guide below to easily apply for an EORI number!
Other FAQs about EORI Number
1. What if I'm not a UK citizen. Do I still need the EORI number UK?
If you are not from the UK and still need an EORI number, the government also counts you. That means, if you are planning to export or import from the UK soon, then you should consider getting an EORI number. Here's a form for Export or Import businesses based outside the UK and owners who do not have a VAT number.
2. When should I apply for the EORI number?
Typically, you should start and submit your application form within a week before the shipment arrives at the port. That's because you will need the EORI number to clear with the custom's authority.
It should also give you ample time to prepare your products' documentation and arrival. If you are using air transport, then time is a sensitive issue. Therefore, the sooner you apply for the EORI number, the better the export or importation process. It will take a few days before you get your number from the HMRC.
3. What will happen if I don't have the EORI number?
Without a doubt, your goods will not be cleared by customs authorities. That means the goods will not enter the country. Therefore, you will not access them, and they will start accruing storage fees at the airport or port. That said, to avoid unwanted costs, it's always best to apply for the EORI number on time. You can be lucky to import a small amount via courier services without the EORI number. However, if you are using air or sea, you need to have an EORI number.
4. Is the VAT number the same as the EORI number?
No. These two numbers have different meanings, but they will be linked together if your VAT number. Therefore, if you apply for an EORI number and have a VAT number, the HMRC will link your VAT to the EORI number.
Takeaway Message
Now I'm sure you understand the meaning of the EORI number. That said, you also understand the necessity to get this number for any import or export business running their operations in the EU countries. Without a doubt, if you'd like to smoothen your trade business, then it's better to apply for the EORI number in advance. It will also help eliminate any unwanted costs while running your business.
There's a column dedicated to VAT under "Business Tips" in our blog. For more helpful articles on VAT, please stay tuned with SaleYee Dropshipping Platform to make your online business easier!
