WARNING: Please note that this page will be changing daily so please check back regularly

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Please check out the What's New page for the latest Brexit-related changes and updates

WARNING: Please make sure you are using version 8.197.90 and above.

Important Information

We have done what we can to ensure that we have added as much Brexit support. However, it is important that you review your own needs and
business requirements and make sure that you do your own research to ensure that you are ready for Brexit.

This page includes information that you may require if you are selling to or purchasing goods from the EU.

Please visit the following government page to find out more about the new rules when trading with Europe GOV.UK new rules are here. This page includes a Brexit checker wizard and as well as information about what you need to do differently.

Questions and Answers

The following page is a link the Brexit Q&A page, Brexit - Questions and Answers.

System Values Options

There are some new changes in System Values:

In the [ System Values | Accounts | Brexit ] section the following options are available:

  • Brexit Features Active: This options enables the new features added into the system once beyond the transition date of 01/01/2021, for example the new Purchase Invoice functionality.
  • Test Mode: When the above option is active and the date is before the 1st January 2021, this option will enable Brexit behaviour in the system for testing.
  • Selling from Northern Ireland to EU: When Brexit is active, ALL Sales from the system to an EC Company will be treated the old EU way and VAT will be applied. Only activate this if you are shipping ALL goods from Northern Ireland and want EC Tax rules to apply.
  • Importing from EU to Northern Ireland: When Brexit is active, Purchase Invoices into the system from an EC Company will be treated the old EU way and EC VAT will be applied. Only activate this if you are receiving goods into Northern Ireland on all Purchases Invoices.

Basic Reports

Customs Invoice

A new checkbox, "Use Customs Invoice", has been added to [ System Data | Countries ]. If this option is ticked and the country applicable is either the INVOICE or DELIVERY country for a sales order, all actions which print the invoice document (including the email trigger) will use the customs invoice instead of the standard invoice document, see How To: Ensure that Customers from a Specified Country use the Customs Invoice.

From Version 8.197.90 there is a new purpose built Customs Invoice. If you would like this invoice to be sent to you please email Training

The new Customs Invoice includes the following information:

To apply this report when sent from Training

  1. Save the file where all your Basic Reports are stored, usually on the K drive.
  2. Open Basic Reports.
  3. Open the Customs Invoice
  4. At the bottom of the dialog, use the green folder to locate the Customs Invoice Report that you saved above.
  5. Test that this works as required in your Test system.

Standard Invoice

The following pages explain how you can add Harmonisation Codes, ICN Codes, Country of Origin and Barcodes to your invoices in Basic Reports:

Courier Exports

It has not been possible to add itemised support for all our courier services and in order to add support many courier integrations required revamping, as such existing integrations have in many cases been replaced by Neo versions of those integrations. If you are not already using a known supported integration or neo variant you will need to arrange for this to happen, this will not have happened automatically without contacting our development team, this will likely involve reconfiguring your courier setups in Khaos Control once new services have been deployed to your systems. Please review your courier needs as we only have a finite capacity for assisting customers transitioning to a new courier services, if your existing service does not meet your business needs.

Harmonization codes are required for most couriers to ship internationally, some however also use Intrastat Commodity Codes. Facilities have been introduced to Khaos Control to allow users to configure supported couriers to use either of the codes, however this is not validated by Khaos Control, and advise should be sought from individual couriers about which codes are required to use their services. It's likely that discrete services will need to be configured to cover Europe and ROW separately for some courier integrations.

Even if your courier is listed here you need to ensure you are using the latest version of the relevant integration as most couriers have multiple flavours including old integrations which DO NOT SUPPORT itemised information required for shipping internationally.

Intersoft users please note: We are currently making changes to this integration following information release by Intersoft on 18/12/2020. As soon as this changes have been completed we will release updates to affected customers. Intersoft are planning an API update on 29th or 30th of December to accomodate "postage costs" required by Royal Mail for international shipping.

GFS users: If you are not already using the 'GFS neo' integration then your current courier integration does not support itemised export information and will not be able to ship internationally using GFS.


The following table indicates which of the codes, ICN or Harmonisation, that the couriers use:

Harmonisation Codes
Intrastat ICN Codes
Amazon Logistics
Small green tick
Small green tick
Small green tick
Small green tick
DPD Ship@Ease Neo
Small green tick
Hermes V3
Small green tick
Intersoft (Intelligent Shipper)
Small green tick
Small green tick
My Hermes Neo
Small green tick
Panther Logistics
Small green tick
ParcelForce ExpressLink V14
Small green tick
Small green tick
Secured Mail
Small green tick
Small green tick
Small green tick
Wayfair Courier
Small green tick
Yodel Desk Despatch
Small green tick
GFS neo
Small green tick
UPS WorldShip V18 (Neo only)
Small green tick

My courier is not working as expected

During the early days of January we have been coming across some common 'gotchas' when dealing with couriers, please see Common Courier Gotchas

Courier Support for DDP / INCO Terms

The following couriers have been modified to add specific support for INCO Terms e.g. DDP:

  • Intersoft / Intelligent Shipper
  • DPD Ship@Ease Neo
  • MyDHL
  • SecuredMail
  • UPS WorldShip v18 (Neo)

If you have any special INCO terms requirements we recommend you seek advice from your courier and email Development to ensure your needs can be met, only couriers where we have been contacted by customers, have any INCO terms (DDP, DAP) facilities beyond the default.

For information on DAP and DDP see Delivery Duty Paid (DDP) and Delivery At Place (DAP) below.

Harmonisation Codes

From version 8.197.90 Harmonisation Codes have changed so you no longer have to define them against Level 2 Stock Types and you can set a Default Harmonisation Code.

There are three steps to configuring and using Harmonisation Codes, although one step is optional:

  1. Setup your Harmonisation Code in [ System Data | International | Harmonisation Codes ], see How To: Create a Harmonisation Code.
  2. The Code can be mapped to a Level 2 Stock Type, this is optional. If you have lots of codes then this will limit the list of Harmonisation Codes in the drop down when adding them to a stock item to those codes linked to the stock item's stock type, see How To: Map a Harmonisation Code to a Stock Type. (Optional)
  3. Add the Harmonisation Code to the stock item, see How To: Link Harmonisation Codes to Stock Items.

If you have the Stock Import Tool enabled then you can use this to import your Harmonisation Codes, see How To: Import your Harmonisation Codes.

Intrastat ICN Codes

Intrastat codes are reported on in the Intrastat Report in the VAT tab in Accounts.

ICN codes are added to the stock item as follows:

  1. Individually in the [ Stock | Detail | Accounting ] screen.
  2. En-masse using the block updated selected stock items option, see How To: Block Update Selected Stock Items.

Country of Manufacture

The country that the product is manufactured in is defined against the stock item in the [ Stock | Detail | Accounting ] screen using the drop down below the International Harmonisation Commodity Codes button.


Intrastat and EC Sales List

ICN codes will be required for EC Sales and Intrastat reporting, however at this point in time we do not have all the details for the rules in this area. You should seek expert advice as it relates to your business.

If you are required to report on imports, you can use the [ Intrastat ] report and enable the Imports (PO) radio button in the top left.

Tax Returns

The descriptions of the boxes on the Tax return will be changing, the aim being to reduce confusion and use plain language. The changes mainly surround the EU boxes and Northern Ireland and how that is referenced. We were originally told by HMRC that the box descriptions on the VAT100 would not change, however, due to the usage for the Northern Ireland Protocol they have stipulated changes which have been implemented.

In Khaos Control as of HMRC advice provided on 17/11/2020, version 8.197 of Khaos Control includes the descriptions as advised by HMRC at this time.

Addendum: 21/12/2020 Today we received new advice from HMRC which impacts the descriptions for Box 2, 4, 8 and 9 which we have not had time to implement in Khaos Control, changes as a result of this advise will be included in a future update of Khaos Control in January in readiness for 8th April 2021.


The SPLedger has been updated with two new options:

  • Less than £135: If the total value of your whole consignment is under £135 net, then this option should be ticked. The £135 net is the total value of the whole consignment, not just for the invoice that is being posted. The £135 net threshold is not detectable by Khaos Control, so it’s up to you to ensure this is accurate and applicable before posting.
  • EU Import into NI: If you are trading from NI and importing goods from the EU, this option should be ticked. The VAT is accounted for in the same way as it was before Brexit.

Two existing options can also be used post-Brexit where appropriate:

  • EC/RC Tax: This option is only intended to be used when processing Purchase Ledgers and will add an entry into the UK VAT Return that will cancel out the VAT amounts by adding the same tax value as a credit and debit, for example when creating a credit note for an EC supplier.
  • RC VAT: This is used to record VAT on services received from overseas suppliers as this can be considered as a reverse charge. It will appear on the UK VAT Return as two entries for the same amount; one for a sales invoice and the other for a purchase invoice. Examples are if you use overseas shipping agents, legal services or translation services.
    Note: For both EC/RC Tax and RC Tax we recommend that you take advice/guidance from HMRC to make sure this is applicable to your situation.

For more information and a description of scenarios of how the options work, see How the SPLedger VAT and Tax Options Work.

Imports and Exports

For more information see GOV.UK - Exporting and importing businesses: prepare for 1 January 2021

Purchasing - Imports (excluding imports into Northern Ireland)

The £135 is for the whole consignment not just the items that are being booked in. For example, if you order 10 items at £50 each, and delivered 2 of them, you would be still over the £135 as the whole consignment is worth £500.

See GOV.UK - Prepare to import goods from the EU to Great Britain from 1 January 2021

EU - Imports - Less than £135 Net

  • Where you are importing goods B2B, for example from your supplier, and where both businesses are vat registered, the system uses Reverse Charge VAT.
  • Where VAT has been charged by the supplier, treat as normal UK Vat invoice.

To see the process when posting a Purchase Invoice for a consignment worth less than £135 please see How To: Post a Purchase Invoice for an EU Consignment worth less than £135.

EU - Imports - More than £135 Net

  • Import VAT will be posted as Postponed Vat Accounting (PVA) which is similar to reverse charge but appears on the UK VAT Return.
  • If you're not dealing with Import VAT, then this is treated as a UK VAT item, taxable / non-taxable based on user input.

To see the process when posting a Purchase Invoice for a consignment worth more than £135 please see How To: Post a Purchase Invoice for an EU Consignment worth more than £135.

Note: If posting a pre-Brexit invoice from an overseas supplier, please see the Brexit - Questions and Answers.

ROW Sales / Exports

  • RoW Exports remain unchanged.
  • RoW Imports follow the same rules as EU including the £135 Net threshold.

Country Specific Vat Rates for Sales

The Country Specific VAT functionality for sales orders will be made available to all customers free of charge as part of our Brexit preparations, see Country Specific VAT for more information about how this is setup and used.

Country Specific VAT allows you to specify tax rates pertaining to different countries which allows the Sales Invoice to default to the tax rate for the country the goods are being delivered and invoiced to.

EU Sales will post the sales figures to UK VAT return as a zero rated sale for statistical purposes as per HMRC guidelines, if country vat for the EU state is in effect. It will be possible to opt out of this using an option in System Values.

Before using Country Specific VAT, please seek advice from the relevant tax authorities about whether you should register for VAT in other countries and contact our training team to arrange help with configuring this functionality, and ensure your courier export services and options have been discussed with the courier services you are using for your exports.

Country specific VAT for purchases is not supported.

Delivery Duty Paid (DDP) and Delivery At Place (DAP)

There are further considerations which must be discussed with any specific countries tax authority and your relevant courier services before configuring KC:

  • Delivery At Place (DAP) is the default for most couriers, and is where the Duty is paid by the end customer upon arrival and does not require you to be registered for VAT in that country
  • Delivery Duty Paid (DDP) is where you pay the duty on your customer's sales orders instead of the end consumer (your customer). If you wish to offer this service, you may be required to register for VAT in that country of delivery before you can do so. In order to be eligible you will be registered for VAT in that country and as such will need to apply the vat rates for that country.

Not all courier integrations within KC will support DDP / DAP specification at point of export, and this may need to be activated on your account with the courier service provider.

Northern Ireland

If you deal with Northern Ireland then you should seek expert advice; broad facilities have been introduced based on our interpretation of the government advice.

  • Sales to the EU behave the old way, based on a System Values setting (see previous section) which applies globally to all Sales if activated.
  • Imports from EU behave the old way, based on a System Values setting (see previous section) which applies a default which can be opted out of on a case by case basis.
  • ROW imports, it’s our understanding that ROW imports can benefit from the Postponed Vat Accounting changes being applied to EU and ROW.

For more information on how this may affect you see GOV.UK - Moving goods into, out of, or through Northern Ireland from 1 January 2021.

See Also

Visit KhaosWikiX at to see the following:

Contact the Khaos Team