How will Brexit affect your business? [Guide]

The End Of The Transition Period. What Will Happen After Brexit?

There are only three months left until the transitional period between the European Union and Great Britain will be over. Leaving the EU results a lot of changes, especially for entrepreneurs. If your company sells, buys or trades goods with UK entities, you should be aware what changes await you after 1 January 2021.

What does it mean for your company?

When the transition period is over, you will have to comply with the same customs formalities that apply for transactions with non-European Union countries.

Above all, this means that you will need to obtain permissions to import and export any goods that have been highlighted (e.g. waste, selected chemicals or genetically modified organisms). Similar rules will apply if importing or exporting excise goods from the UK, for example: tobacco, alcohol and certain types of fuel. In this case, your company will be required to complete additional formalities.

Another important change will addition to the customs declaration will have to be presented when importing and exporting materials in England. Additional information may also be required for security and safety data.

In the next year’s transactions, you will need to comply with new VAT settlement regulations, which we have detailed in the previous article here. They mainly concern at import of materials from the UK (goods exported to the UK will be exempt from VAT in the European Union but will have to comply VAT regulations for imports into the UK). In addition, you will be required to follow certain procedures and VAT regulations which apply directly to transactions with UK operators.

You should note that these rules are not exhaustive. To ensure that your business is well- prepared for change you need to check out the additional information on your business area.

How to get prepared?

First of all, act quickly. The sooner you take steps to prepare for the new changes, the less your business will be affected after the transition period. Here are some practical steps you should take:

Be in touch with your Partners

The end of the transitional period may seriously affect your company’s supply chain. You have to be aware of what this means for your intermediaries, suppliers or carriers.

Follow information from local authorities and entities

Find out how your company should prepare for the end of transitional period. Ask for full instructions and expectations on what you should to do.

Check regularly the European Commission website

Do not let you miss out on any information that might help your business. On European Commission website you will also find company-specific like ‘readiness notices’, messages that will help you avoid the negative effects of Brexit.

Take action today!

Do not wait until the last minute, because regulations and procedures you need to follow can be difficult and time-consuming.