Business, Forwarding, Freight News, Logistics

French VAT change boosts Rhenus growth

[ April 19, 2023   //   ]

Rhenus UK is attributing steady growth in daily services from the UK to Europe in part to the introduction of the French Reverse Charge VAT regulation, which came into force at the start of 2022.

Since 1 January last year, the VAT due on goods coming from outside the European Union, released to free circulation in France, is no longer paid at the time of customs clearance and must instead be reverse charged in the VAT returns filed with the French tax services.

Gary Dodsworth, UK Road Director at Rhenus UK, adds: “It is deeply heartening to see our UK customers growing in confidence when it comes to exporting post Brexit, and the French VAT change has certainly helped traders in this respect.

“Our daily services growth includes an increase in fixed daily schedules to and from Benelux, France, Germany and Italy. Our daily services, which encompass in-house transport customs solutions, ensure lead time continuity by reducing delay or disruption risks.”

Rhenus is urging exporters to secure their 2023 trading plans and prevent potential export disruption ahead of the migration from the CHIEF to CDS platform. The UK’s legacy customs platform CHIEF is being replaced by the Customs Declaration Service (CDS). The change for imports took place late last year and the transition will take full effect on 30 November  when exports are added.

Dodsworth  said: ‘’We are keen to ensure that, having started 2023 so strongly with rising export levels, businesses don’t stumble following the introduction of new custom procedures. November seems a long way off, but it will be one of the busiest trading periods for many businesses.

“Traders who have not already started to prepare should subscribe to the CDS to register their EORI (Economic Operators Registration and Identification) number with the system. Key additional considerations for traders exporting goods include ensuring authorisation compatibility with CDS. At Rhenus we have the expertise to explain and support these requirements. We are happy to help exporters to manage this shifting landscape.”