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How to Prepare for Brexit

Useful information to help your business prepare for Brexit

Overview

On December 31, 2020, the UK will conclude its transition out of the EU single market and customs union, losing its current unfettered access. As of September 2020, the UK is still negotiating the terms of trade that will govern its economic relationship with the EU following the end of the transition period – including market access and determination of regulatory equivalence in financial and services industries.


HM Government UK Transition – The Border with the European Union


UK Government (HMG) Brexit Resources

EU Brexit Resources

Resources from ITA Strategic Partners

The International Trade Administration (ITA) Strategic Partnership Program entails working with trade associations, private corporations, chambers of commerce, government entities, and other organizations that share ITA’s goals and objectives. As a result, ITA is better able to achieve its mission of enhancing America’s global competitiveness.

Some of ITA Strategic Partners have put together useful information and articles on how to help business prepare for Brexit:

How to Prepare for Brexit

Useful information to help your business prepare for Brexit

Overview

On December 31, 2020, the UK will conclude its transition out of the EU single market and customs union, losing its current unfettered access. As of September 2020, the UK is still negotiating the terms of trade that will govern its economic relationship with the EU following the end of the transition period – including market access and determination of regulatory equivalence in financial and services industries.

HM Government UK Transition – The Border with the European Union

UK Government (HMG) Brexit Resources

EU Brexit Resources

Resources from ITA Strategic Partners

The International Trade Administration (ITA) Strategic Partnership Program entails working with trade associations, private corporations, chambers of commerce, government entities, and other organizations that share ITA’s goals and objectives. As a result, ITA is better able to achieve its mission of enhancing America’s global competitiveness.

Some of ITA Strategic Partners have put together useful information and articles on how to help business prepare for Brexit:

 

Brexit Frequently Asked Questions (FAQ)

  1. What is changing in the UK’s import/export system after Brexit? What are the new rules?

A: Changes are coming to the way Her Majesty’s Revenue and Customs (HMRC) handles import and export of good and services. Your best starting point is to visit the main HMRC Brexit Transition webpage.

  1. What will the new tariff system look like?

A: You can find more information here.

  1. My business is registered in the U.S. I am selling directly to UK-based businesses, not consumers. Do I need to register for VAT?

A: According to the HMRC, the UK VAT registered business should provide you with their VAT registration number and needs to be listed on your documentation. At that time, the responsibility to account for VAT will switch to the UK VAT registered business customer, who will account for it by means of a reverse charge procedure. Therefore, your business will not be liable to account for the VAT in these circumstances.

Your business must add a note to the invoice it issues to the UK business customer to make clear that the customer needs to account for VAT. The OMP or direct seller should include a reference to ‘reverse charge’ on the invoice, for example, ‘reverse charge: customer to account for VAT to HMRC’.

Follow this link for more information.

  1. I am a U.S.-based business selling goods directly to consumers in the UK. Do I need to register my business for VAT in the UK?

A: According to the HMRC, from 11pm on 31 December 2020, UK supply VAT is due at the point of sale on consignments of goods that are outside Great Britain (England, Scotland and Wales) and sold directly to customers (not through an online marketplace) in Great Britain with a value of £135 or less.

You can find more information about VAT here.

  1. What are the main changes to the way VAT will be handled in the post-Brexit era?

A: For imports of goods from outside the UK in consignments not exceeding £135 in value, the HRMG will be collecting the VAT at the point of sale. This will mean that UK supply VAT, rather than import VAT, will be due on these consignments.

Online marketplaces (OMPs), where they are involved in facilitating the sale, will be responsible for collecting and accounting for the VAT.

For goods sent from overseas and sold directly to UK consumers without OMP involvement, the overseas seller will be required to register and account for the VAT to HMRC.

For more information, please visit this link.

  1. I live in the U.S.A. I am selling goods online to consumers in the UK. Do I need to register my business for VAT in the UK after Brexit?

A: According to the HMRC, from 11pm on 31 December 2020, UK supply VAT is due at the point of sale on consignments of goods with a value of £135 or less that are outside Great Britain (England, Scotland and Wales) and are sold in Great Britain.

Where those goods are sold through an online marketplace, the online marketplace will be liable for the VAT.

Online marketplaces will also be liable for the VAT on goods of any value that are located in the UK at the point of sale and sold by an overseas business through an online marketplace.

You can find more information here.

  1. Can I reclaim the VAT I paid purchasing goods and services from the UK?

A: Yes, you can likely reclaim the VAT, for the most part. You can find details here.

  1. Will my EU CE mark be accepted in the UK after Brexit starts?

A: Yes, it will, for up to one year.  The UK has kept in the EU CE mark directives. Until December 2021, you can still use your CE markings. After 1 January 2021 your business will need to affix a UKCA (United Kingdom Conformity Assessment) mark on your products being sold in the UK.  For more information, please visit the HMRC UKCA Guidelines.

CS UK Business Service Providers (BSP) Directory

The BSP directory is designed to help U.S. companies identify professional service providers to assist them in the assessment, completion, and/or financing of an export transaction.

Our BSP clients are also a good resource for Brexit information and its impact on doing business in the UK: CS UK BSP Directory.

Contact Information

Please contact Office.London@trade.gov if you have questions or are seeking additional information.

 


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  Notice to Visitors!


  The link you have chosen will take you to a non-U.S. Government website.

  If the page does not appear in 5 seconds, please click this: outside web site

  BuyUSA.gov is managed by the International Trade Administration and external links are covered by its website disclaimer statement.