EU Countries Gaining New Business
While everyone is waiting for the UK elections, U.S. and Canadian companies are already preparing for the possibility of a no-deal Brexit. Changing UK border duties, VAT and increased customs formalities (since the free movement of goods, services and people between UK and EU would halt) have already dissuaded companies from selecting the UK as their “EU hub”. Customs formalities include the completion of customs declarations, as well as the payment of any applicable customs duties, antidumping duties, import VAT and excise duties. Further, certain goods may be subject to a range of non-tariff requirements which typically include import and export licenses, sanitary and phytosanitary measures, adding to the compliance obligations at the border.
Whatever happens, Brexit will inevitably have great short and long-term consequences for companies with economic activities to and/or from the UK. Many companies are now planning to restructure their EU operations; moving distribution and warehouse activities to other EU countries. We predict Germany, the Netherlands, Ireland, France and Belgium will see an increase in business starting already by the end of 2019. Clients are already consulting our Euro VAT team on how to switch their VAT management to another country. Please contact us today to discuss.
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