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Customs effects of Brexit

in Tax

Regarding the BREXIT, please note that the UK Parliament has approved this week the Brexit Agreement. It is foreseen that the European Parliament votes the UK leave in the session to behold the 29th and 30 January.

So, there are 2 possible Scenarios:

  1. The European Parliament validates the Agreement,
    nothing has to be done up to 31st December 2020 and from 1st January 2021 on the effects will be described in the next paragraph.

2. If the European Parliament doesn’t validate the agreement,
then there’s no agreement: it means that from 1st February 2020, the UK will be the third country with all tax effects.

For customs purposes

  • This means that for all customs purposes all the transactions of goods done with the UK will be considered Imports and Exports and not acquisitions or deliveries between EU countries.
  • So, they have to be declared as Imports and Exports and not as intra EU transactions and no INTRASTAT will have to be filed.
  • It is necessary to get an EORI in order to clear the Import and Export. If you have done this transaction previously it means that you get this number if it is not your case, the EORI has to be asked for the transactions with the UK.
  • In case of services the reverse charge rule will be applicable but considering that the UK is not an EU country member.
  • UK won’t have the consideration of EU country member related to the withholding tax applied in Spain to non-resident and the transactions done for non-resident people in Spain, the Double Tax Treaty between Spain and UK will be the only rule applicable

We are at your disposal regarding this.