BB/1A/99 The single currency (the euro)
Business Brief, Issue 1. 13 January 1999
From 1 January 1999 eleven European countries adopted a single currency (the euro).
Although the UK is not one of the countries joining in the first wave, the introduction of the euro is likely to affect a wide range of UK businesses. This Business Brief explains the impact upon Customs and Excise's requirements. There are two main issues, paying taxes and duties in euro and accounting and invoicing in euro.
1 Paying taxes and duties in euro
UK businesses can now pay Customs and Excise taxes and duties (including arrears) in most cashless forms of the euro. Notes and coins will not be introduced until 2002. However, all declarations must continue to be made in sterling, including VAT returns and intrastat declarations.
Exchange rate fluctuations. When paying in euro, the exchange rate will fluctuate between the time payment is initiated or sent to Customs and the time it is cleared. Businesses will be credited with the sterling value received by Customs. The repayment of overpayments to businesses and the payment of underpayments