With the EU Exit fast approaching you and your business will need to be prepared.
As you know, from 1st January 2021 the UK will leave the EU resulting in several changes to how we do business to and from the EU. Whilst (at the time of writing) we are still awaiting final details of whether there is to be a trade deal or not, you should be well under way in your preparations for dealing with any changes to your own business.
The following list is provided to assist you in accessing a range of links and resources available for your business.
First, however, we recommend that you undertake the UK Government’s ‘Brexit Checker’ found at https://www.gov.uk/transition
Make sure you are aware of all the changes that will affect your business from 1st January 2021.
- Prior to January 1st 2021, If you are sending parcels to EU from the UK would need to pay 20% VAT on all transactions.
- From January 1st 2021, You will no longer be required to pay VAT on their transactions for parcels going to the EU.
- The new rules also apply from parcels being shipped from the EU to the UK.
Commodity Codes/Tariff codes
- Tariff codes, such as the Harmonised System (HS), are used in international trade to identify goods.
- From December 22nd, HS codes will be required for all parcels being shipped to the EU from the UK.
- This change will require customers to complete an additional, straightforward step in the order process.
- Goods now passing from the UK to the EU (and vice versa) will be treated as imports and exports.
- As such, specific documentation will need to be provided alongside goods to clear custom borders.
Duties & Taxes
- Goods entering the UK will be charged Import VAT and Import Duty.
- Goods leaving the UK for the EU will be charged Import Duty & Import VAT at EU-set rates.
- The recipient will be liable for these.
Expect initial delays at customs borders
- In the early days, post January 1st 2021, it is highly likely that there will be long delays at all UK ports.
- These delays may affect supply chains and delivery times, so be sure to keep your customers informed and lines of communication open with your suppliers.
Ecommerce – online
- Does your business currently operate within the eCommerce Directive? If so then you should prepare now for the changes.
- Check and test your ecommerce platform to ensure shipping and tax settings for the EU countries into which you currently sell can be set as required.
- Tailor the policies to conform to both the new United Kingdom and European Union regulations, making a point to differentiate between them in a post-Brexit world.
- Check your suppliers – explore alternative options in case EU based suppliers and/or tariffs prohibit profitability.
GDPR & Data protection
- The EU GDPR will no longer apply directly in the UK at the end of the transition period (31 December 2020). However, UK organisations must still comply with its requirements after this point.
- First, the DPA 2018 enacts the EU GDPR’s requirements in UK law. Second, the UK government has issued a statutory instrument – the Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2019 – which amends the DPA 2018 and merges it with the requirements of the EU GDPR to form a data protection regime that will work in a UK context after Brexit.
This new regime will be known as ‘the UK GDPR’. There is very little material difference between the EU GDPR and the proposed UK GDPR, so organisations that process personal data should continue to comply with the requirements of the EU GDPR.
These further links will hopefully provide you with some useful information and links for you to explore.
– https://www.gov.uk/transition UK tariffs from 1 January 2021 – GOV.UK
– Prepare to export goods from Great Britain to the EU from 1 January 2021 – GOV.UK (www.gov.uk)
– Prepare to import goods from the EU to Great Britain from 1 January 2021 – GOV.UK (www.gov.uk)
Find out how to apply for a duty deferment account and guarantee waiver
– Apply for an account to defer duty payments when you import or release goods into Great Britain – GOV.UK (www.gov.uk)