The transition period that has been in effect since the UK left the EU is soon to end. No free trade agreement is yet in place. Customs duties and VAT are two areas that will be affected.
On 31 January 2020, the UK left the EU. With just over four months left of the transition period, there is still no free trade agreement in place. Many companies risk facing problems if no agreement is signed, and authorities recommend that business owners follow developments to prepare themselves and their company in the best possible way.
The United Kingdom is one of Sweden's most important trading partners, both for exports and imports, and these areas will be affected from the turn of the year.
”At present, we do not know what the future relationship between the EU and the UK will look like, but requirements for customs formalities, such as submitting customs declarations for import and export, will be introduced,” writes the Swedish Customs Board on its website.
From 1 January 2021, EU companies wishing to import to or export from the UK must have an Economic Operators Registration and Identification number, also known as an EORI number. This is required for customs formalities. An EORI number can be obtained now and is done via the Swedish Customs website.
But not only customs clearance is affected, but also matters such as VAT. The Swedish Tax Agency writes in its legal guidance that after the end of the transition period, the same rules regarding VAT will apply to the United Kingdom as to other non-EU countries. In practice, this means that the sale of goods transported from Sweden to the United Kingdom counts as export, and the purchase of goods transported from the United Kingdom to Sweden is regarded as import. For the sale and purchase of services, the United Kingdom should be regarded as a non-EU country.
This article is published in cooperation with the magazine Resultat
Read more The Swedish Customs Agency on Brexit
Read more The Swedish Tax Agency on Brexit
