Yesterday's vote in the UK parliament was pretty clear: The Withdrawal Agreement on the future relationship between the UK and the EU was rejected. What's next...?
Everything is still unclear and no one really knows. The UK still has the following alternatives:
- Hard Brexit, and hence, no agreement between the UK and the EU. The WTO rules will apply in order to regulate the economic relationships between the UK and the rest of the world.
- The call for a new referendum is growing ever louder.
- European Court of Justice ruled that the UK could stop the process without seeking EU approval.
- Agreement with the EU on an extension of the deadline of March 29, 2019.
What does that mean for my company?
- Due to the new border between the UK and the EU, import duties will be applicable for cross border transactions.
- MOSS registration in the UK should be shifted to other EU countries.
- Think about warehousing in the UK to ensure a timely delivery if needed.
- VAT codes must be customized and tailored.
- Review of supply chains in order to optimize the structure considering the customs border between the UK and the EU.
- Internal trainings for the people involved in supply chains and raise awareness of sales people.
What do I have to think about?
The UK currently rushes headlong into a hard Brexit with its eyes wide open.
Although, there are many possible scenarios, we highly recommend that companies with a business relationship in the UK and the EU have to be prepared for a hard Brexit as per March 29, 2019.
Time is short, get ready, your PrimeTax VAT team is happy to assist.
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