Comprehensive Guide to EORI: Everything You Need to Know

What is an EORI Number?

A registration and identification number, Economic Operator Registration and Identification (EORI) number, is a unique identification number given specifically by HM Revenue & Customs (HMRC) to enterprises that are registered for Value Added Tax (VAT) in the United Kingdom. It is also issued to single individuals who are involved in the importation or exportation of goods across the borders of the UK. The main objective of introducing the EORI system is to ease and simplify different customs procedures, hence increasing the efficiency of the tracking procedures related to imports and exports both within the boundaries of the European Union (EU) and also particularly in the United Kingdom.

Why is an EORI Number Important?

An EORI number, or Economic Operators Registration and Identification number, is a fundamental requirement that has to be acquired when one is engaging in importation or exportation of goods specifically between the United Kingdom and non-member states of the European Union. In the absence of a valid EORI number, customs officials will not clear the shipments, thereby causing serious delays and additional expense to the concerned parties. Incidentally, the EORI number can be utilized in any EU member state, such that an importer only needs to apply for a single EORI number in order to sufficiently serve all of their import activities in different EU states.

Who Needs an EORI Number?

Any company that is trading within the EU customs area and engages in import/export of goods needs to possess an EORI number. These include:

• UK companies importing or exporting goods other than in the UK.
• Non-VAT registered businesses or individuals engaged in importing/exporting.
• Companies or sole traders who make their own customs declarations.

Who Does Not Need an EORI Number?

• Companies that export services but are not trading goods.
• Companies moving goods only between the UK.
• Companies shipping goods between Ireland and Northern Ireland. 

EORI Numbers for Non-EU Residents

For non-EU citizens and businesses, the process of obtaining an EORI number depends on the particular destination to which the initial customs declaration will be made. To trade in the EU, a non-EU business must register with the customs department of the first European Union nation in which it will export or import products.

Legal Entities Eligible for an EORI Number

An EORI number will only be assigned to a legal entity, which includes:

• Companies (limited and unlimited)
• Self-employed traders
• Partnerships
• Sole traders

One should be aware that an EORI number is allocated to an entity itself, not for individual branches or divisions of a company.

The Impact of Brexit on EORI Numbers

Since Brexit, UK businesses require distinct EORI numbers to trade both with the EU and non-EU nations: 

• UK EORI Number (begins with GB): Required for imports and exports between the UK and non-EU nations.
• EU EORI Number: Required to trade with the EU member countries. 

If a UK business has an operation in the EU, it will be required to register an EU EORI number from an EU customs authority.

When is an EORI Number Used?

The EORI number has to be used in correspondence with customs officials and is compulsory in the following cases:

• Where giving pre-arrival and pre-departure information for goods entering and leaving the UK.
• Where making customs declarations on imports and exports.
• Where giving information to customs authorities under customs procedures.
• Where claiming import VAT on form C79 (Monthly Import VAT Certificate). 

How to Obtain an EORI Number

Checking if a Business Already Has an EORI Number

UK VAT-registered businesses must first verify if they already possess an EORI number before applying for one. This can be done through the use of the EORI checker tool on the UK government website.

Applying for an EORI Number

To register for an EORI number, firms have to make an application via the Government Gateway. Depending on whether the applicant is VAT-registered or not, there are different procedures:

• VAT-registered businesses: Make an application online using HMRC's online services.
• Non-VAT registered businesses: Fill out a specific application form.

Required Information for Application

The following information must be provided by the applicants when they apply:

• VAT number and date of registration (where applicable).
• National Insurance number (sole traders and individuals).
• 10-digit Unique Taxpayer Reference (UTR).
• Date of business start and Standard Industrial Classification (SIC) code.

Processing Time for EORI Applications

Most applications take three working days, and companies are issued their EORI number by email. But it can take 48 hours for activation before the number can be utilized in customs declarations.

If you need a step-by-step guide, read our blog on EORI Numbers Simplified for expert insights.

Keeping Your EORI Number Up to Date

It is essential to inform HMRC of any changes concerning your business, such as: 

• Alterations to business name or address.
• Updates or cancellations of VAT registration numbers.
• Closure of the business or changes that impact eligibility for an EORI number.
• Requesting to add or delete business information from the public EORI checker. 

Businesses must inform HMRC through the online form.

Multiple EU VAT Registration Numbers and EORI

When the company is registered in different countries of the European Union, it will receive different VAT numbers for each nation. But it should be kept in mind that even if the company is registered with several VATs, it will be assigned one EORI number. This specific EORI number is provided by the customs department of the concerned country in which the company is based or has main operations.

Companies can request HMRC, the British tax authority, to include all the EU VAT registration numbers applicable to the legal person when making the UK EORI application. This is to avoid any possible complications or issues that could arise in customs declarations.

Adding Foreign VAT Numbers to an EORI Number

If an enterprise has previously been allocated an EORI number but needs to add overseas VAT registration numbers, it should call HMRC with the below information: 

• UK EORI number
• Company name and address
• Name and title of the contact person
• List of foreign VAT registration numbers

Consequences of Not Having an EORI Number

Without an EORI number, companies can encounter:

• Delays in customs clearance of goods
• Extra charges due to storage and fines
• Failure to import/export goods
• Challenges in reclaiming import VAT

In order to avoid complications, companies should apply for an EORI number prior to engaging in international trade. For more information 

Conclusion

An EORI number, or Economic Operators Registration and Identification number, is the bare minimum for any business that deals with the export or import of products into or out of the United Kingdom. Knowing the application process, when the requirement comes into play, and how best to address any changes that occur are all critical elements to maintaining customs compliance while fostering efficient trade practices. 

If your company requires professional accounting services to enable crucial activities like VAT registration, EORI application, or full bookkeeping, then you have come to the right place with Fair View Accountants, as we are committed to helping you. Do not wait to get in touch with us today for expert and specialist guidance on crucial issues like tax law, customs regulations, and efficient fiscal management processes.

FAQs

How long does it take to get an EORI number?

Normally, it would take up to 3 working days to obtain an EORI number.

Can an individual apply for an EORI number?

Yes, businesses that engage in importing or exporting products are eligible to apply.

Do I need a separate EORI number for each EU country I trade with?

No, one EU EORI number covers all member states of the EU.

What happens if I don’t have an EORI number?

Customs officials will not clear your shipments, which would lead to delays and additional costs.

Can I check if I already have an EORI number?

Yes, you may use the government's EORI checker tool.

Is an EORI number required for digital services?

No, it is needed only for those companies that work with physical commodities.

Do I need an EORI number for Northern Ireland trade?

No, unless exporting goods out of the UK..

Can I transfer my EORI number to another business?

No, EORI numbers are business entity-specific.

Do I need an EORI number if I use a freight forwarder?

Yes, if you are the importer/exporter of record.

How do I cancel an EORI number?

You may apply for cancellation with HMRC if you no longer require it.