In our news post from December 16, 2020, we last reported on the VAT consequences of a tough “BREXIT”. On December 24, 2020, the parties finally agreed on a trade agreement. A hard “BREXIT” could thus be prevented at the last minute.
However, the concluded agreement has no impact on sales tax. The UK remains a third country. We have already reported in detail on the effects.
However, the agreement contains a number of customs regulations. The customs borders between the UK and the EU will remain in place. When goods cross borders, import and export declarations must be submitted and the movement of goods is subject to border controls. However, the agreement provides for an exemption from import duties for goods that have their preferential origin in the other area. Therefore, goods with preferential origin in the UK can enter the EU duty free and vice versa.
We will keep you up to date on further developments in connection with the UK’s withdrawal from the EU.
We would be happy to support you in implementing BREXIT in your company. Contact us.
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