How will Brexit affect your business?

The United Kingdom left the European Union on 31 January 2020. Under the leaving agreement, there is a transition period (also called the implementation period) which will come to an end on 31 December 2020. This period cannot be extended.

During the transition period the UK is no longer a Member of the EU, although it does remain in the customs union and single market. Effectively this means that existing VAT and tax arrangements remain in place until the end of 2020.

As the exact rules regarding the relationship between the EU and the UK are still being agreed, it is important to keep up to date with developments. RMB is monitoring the situation and regularly reporting to affected customers.

If you would like to know how your business will be affected by Brexit, contact us today. We will map your operations and flow of goods to help you determine your fiscal liabilities and the actions you need to take.

Email us today or call +33 3 20 25 70 70 for a no obligation consultation…

How will Brexit affect your business?

When the transition period ends, the UK will lose all rights to trade under existing arrangements unless a trade agreement is in place. In the absence of an agreement, the movement of goods between an EU country and the UK will no longer be an intracommunity operation. Instead it will be classed as an import/export operation and will be subject to customs procedures. These may include:

  • Customs tariffs and duties: Goods moving between the EU and UK will be taxed on import. Customs tariffs will need to be paid when the goods enter the importing territory.
  • Import VAT: All goods moving between the EU and UK will be subject to VAT on import.
  • VAT registrations: Companies may need to register a VAT number in both the EU and UK. For example, if the seller is the importer of goods and subsequently sells those goods to an end client, they will require a VAT number in the country where the goods are sold.
  • VAT refund requests will be subject to the ‘13th Directive’. This can delay VAT refunds by six months or more.
  • A UK EORI number will be needed by companies which import or export goods to the UK. Existing EORI numbers which were valid in the EU and the UK will expire on 1 January 2021.

RMB can help you to decide which options are necessary for your business and assist in the completion of all formalities. In addition, we offer:

  • A free audit of your business to determine if you are Brexit ready
  • VAT compliance services and training for companies in Europe and the UK
  • Fiscal representation in countries where it is needed
  • Customs compliance and other related services
  • Establishment of ‘designated exporter’ records in the EU for companies outside the EU
  • Intrastat filing.

Email us today or call +33 3 20 25 70 70 for a no obligation consultation…

Mitigating the effect of Brexit

Following Brexit, UK companies will not be able to benefit from the EU’s simplification rules. But RMB has a solution which does not require you to establish a company in the EU: make France your gateway and hub for the EU market.

Establishing a logistics platform in France will enable your company to:

  • Use harmonised intra-EU VAT regulations which were available before Brexit
  • Import goods to France from non-EU countries without paying import VAT at customs
  • Benefit from the EU’s open borders – ship and receive goods between EU countries without customs delays
  • Maintain existing VAT exemptions on sales and purchases in the EU
  • Benefit from call-off stock VAT facilitations
  • Maintain your corporate tax liabilities in the UK.

To realise all of these benefits, all you need to do is appoint RMB as your tax representative. It couldn’t be simpler.

Want to know more? Click here to read our article: ‘Having a warehouse in France’.

Email us today to find out how we can minimise the effect of Brexit on your business…

How can we help you today?

Do you have questions about how RMB can help your business? Send us an email and we’ll get in touch with you shortly, our VAT experts are always happy to help. You can also contact us by phone: +33 3 20 25 70 70.

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