Find out how Brexit will affect your trading relationships with the UK.
The United Kingdom’s departure from the European Union will take place, unless another date is set, on March 30th 2019.
If you trade with the United Kingdom, you should not overlook the fact that, in terms of customs and VAT, your company will have to adapt to this change since the entry and exit of goods into the United Kingdom from the European Union will be treated in the same way as if it were a third country.
With customs matters you must bear in mind that:
● Incoming and outgoing goods shall be subject to customs supervision and may be subject to customs controls.
This implies that it will be mandatory to comply with formalities that previously did not apply such as obtaining the EORI (Economic Operator Identification Number), submiting declarations for customs purposes, as well as the corresponding guarantees for potential or existing customs debts.
● In addition, goods shall be subject to tariffs and restrictions by product type.
● AEO (Authorised Economic Operator) approvals issued in the United Kingdom shall cease to be valid in the European Union.
For VAT purposes these changes will occur:
● Incoming and outgoing goods will qualify as imports or exports, so you will pay VAT at the time of import while exports will be exempt from VAT.
● Companies established in the UK will have to apply for a refund of VAT paid in the European Union following the procedure provided for companies established in third countries (i.e. outside the EU).
Reciprocal agreements will also need to be signed between the United Kingdom and each of the Member States.
If you want to prepare for this new scenario please contact us and we will help you continue trading with the UK minimising the impact of Brexit on your business.