Brexit – or “British exit”, the most frequently used term when talking about de United Kingdom’s decision to leave the European Union – came into effect on the 31st of January of 2020. Since then, the United Kingdom (UK) has ceased to belong to the European Union (EU). However, until December 31st of this year it is in a transition period. Until then, nothing will change and EU’s rights will continue to apply to the UK.
Brexit could be a challenge for companies’ internationalization to the United Kingdom. The fact that the market no longer belongs to the European community could lead to new customs and tax procedures. While we are still in the transition period, you should prepare yourself, anticipating necessary decisions and actions, in order to avoid discomposure and to reduce the risks for your company. To support companies during this time, EU created the European Union Brexit guide – How to get ready for the end of the transition period.
Your company will be affected with this decision if:
- Exports or imports from the United Kingdom;
- Transport goods through the UK;
- Trade UK goods to EU’s countries.
In case of an agreement
These changes means that, if there is an agreement by the end of the transition period, it will be necessary to file customs declarations to import, export and transport goods through the UK; will have to provide data on safety and security matters; will need licenses to transport certain goods; and you will have to declare VAT in the EU’s country of origin on the goods you take to the UK.
Exit without a deal
If there is no agreement established with the European Union, the following formalities can be added: paying customs duties on goods placed in the EU from the United Kingdom and quotas can be imposed on goods entering the EU from the UK. This means that, without an agreement, trade relations with the European Union will begin to be governed by the rules of the World Trade Organization.
Avoid difficulties and prepare yourself for the end of the Brexit’s transition period. For more information, visit the EU page dedicated to Brexit.
⇒ Watch a video of the EU which explains the main moments of the UK’s leaving process :