How will Brexit affect Spanish companies?
Today there are even more unknowns than certainties about how Brexit affect Spanish companies. The only thing that is clear is that the United Kingdom’s exit from the European Union (EU) would impact on Spanish and European business activity. Without a definitive agreement, trade with the United Kingdom will be regulated by the general rules of the World Trade Organization (WTO). The United Kingdom, with or without agreement, will become a third State.
Which companies will be affected by Brexit?
For starters, companies will only be affected if they sell goods or provide services to the United Kingdom, if they buy or receive services from this country or if they transport within their borders.
Who sells in the United Kingdom
Brexit will make the United Kingdom a third country, so the commercial rules that apply to the members of the European Union will cease to apply and the general rules of the World Trade Organization will apply, unless a different agreement is reached. This change has implications in customs, VAT and special taxes.
For VAT purposes, shipments to the United Kingdom will no longer be considered intra-community deliveries and will become exports. In this sense, it will be the United Kingdom who applies its own regulations in this regard.
The procedures also change, and any shipment will become an export to a third country and the corresponding special taxes will have to be paid. In addition, this implies that an export declaration will have to be made.
Already at the destination, the passage through British customs will also be less agile and it may even be necessary to pay taxes again.
Who import products from United Kingdom
When the United Kingdom leaves the EU, its export and import documents will no longer be valid, as will authorizations for simplifications and other customs procedures. The reason, again, is that they will operate with the United Kingdom as a third country.
The consequences go through the need to present a declaration of entry of the merchandise, a customs declaration and a declaration of temporary deposit. In addition, the corresponding tariffs will be applied to the imported goods and, in some cases, it will be necessary to obtain a specific import license.
Similarly, VAT will also be applied to products as it is not considered an intra-community acquisition. To this is added the payment of Special Taxes whenever it is relevant and the possibility of having to register in the registration and identification of economic operators to obtain an EORI number.
How should Brexit affect Spanish companies?
-The company must be registered with the national customs authority.
– You should consult the simplifications from which the company can benefit, such as reductions in the amount or simplifications for transit procedures.
-Request the status of authorized economic operator.
-Register in an EU27 Member State, in the case of being registered in the Mini VAT Single Window in the United Kingdom.