Brexit

The main changes that entrepreneurs will face from 1 January next year are:

Any goods entering the EU customs territory from the UK or leaving the EU for the UK will be subject to customs supervision and control. Customs procedures should be applied when goods are moved between the EU and the UK, as in trade with any other third country;

Trade conditions between the EU and the UK will change;

The application of VAT to existing supplies and acquisitions of goods will change, which will become exports and imports of goods respectively from next year.

Imports of goods originating in the UK will be subject to a 0% preferential tariff rate of customs duty, subject to the submission of a proof of origin in accordance with the requirements

As from 1 January 2021, the arrangements for the application of VAT to services provided and received with the UK will be as laid down with third countries and third territories.

When providing services to third-country persons, the correct application of VAT must take into account the nature of the service provided, the place of supply of the service must be determined by assessing the status of the recipient of the service, that is to say whether or not the recipient of the service carries out an economic activity.

I would point out that the detailed rules for the application of VAT to services supplied and received in transactions with third countries have not been changed.

Private individuals, on the other hand, will mainly face disruptions in the following areas:

• travel from/to the UK (customs procedures, customs charges, restrictions/prohibitions on movement of goods, etc.);
• goods imported into personal luggage with a total value exceeding EUR 300 on entry by land and exceeding EUR 430 on entry by air or sea shall be subject to VAT, while goods with a value exceeding EUR 1200 shall be subject to both VAT and customs duties. Restrictions on movement of goods in personal luggage must also be observed, including conditions regarding duty-free importation of excisable goods (tobacco products, alcohol and fuel);
• shopping in UK internet shops (VAT on goods over EUR 22; VAT and customs duties on goods over EUR 150);
• non-commercial consignments (gifts sent by one natural person to another natural person) to/from the UK (VAT on goods over EUR 45, VAT and customs duties on goods over EUR 500).