Originally written by Christophe Pecoraro on Small Business
What’s changed with exports to an EU customer post Brexit?
The most significant changes come as a result of the UK’s exit from the single market and the customs union. Any EU customer buying products from a UK-based retailer are now subject to charges comprising import duties plus courier or postal handling fees. Naturally, the opposite of this is also true, with additional paperwork and costs applying to British consumers purchasing goods from Europe.
Unfortunately, consumer standards are not going to relax whilst retailers find ways of adapting to these new rules. Workarounds do exist and are readily being adopted. But the customs charges and extra paperwork have significantly increased the complexity and cost of shipping products in and out of the EU.
In addition to unwelcome delays, all the added cost has to go somewhere. For businesses that have been unable to cover this themselves, many have had to pass this onto the end consumer. In a period where consumers are expecting online shopping to compensate entirely for the high street experience, these effects are accumulating to a lot of unhappy customers. Suffice to say, for smaller businesses attempting to contend with the likes of
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Small businesses selling into EU face £180m in extra red tape costs
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small businesses that sell into Europe face £180m in extra red tap costs as they get swept up in new EU One-Stop-Shop VAT rules.
The new EU One-Stop-Shop rules, which will be introduced on July 1, are designed to stop an estimated designed to stop an estimated €7bn in annual VAT fraud by non-EU ecommerce sellers, mainly located in China, according to Alavera.
However, the EU One-Stop-Shop changes remove remove VAT exemptions for SMEs and shipments not exceeding €22 (£19), which means about 26,000 UK e-commerce sellers will have to register for VAT in an EU member state for the first time.
>See also: Where to find your £2,000 Brexit Support Fund grant
This will cost a majority of these companies at least €8,000 (£6,900) a year each, or roughly €208m (£180m) annually.
“Now we’re outside of the EU, [the UK has] been lobbed in with VAT-avoiding Chinese traders, and ecommerce companies will pay the price,” Richard Asquith, vice-president global indirect tax at Avalera, told the Financial Times.
UK e-commerce sellers will now have three options when trading into the EU:
Register for VAT in the country where they sell most of their goods, which the European Commission estimates will
Hot Business News Today
Small businesses selling into EU face £180m in extra red tape costs
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small businesses that sell into Europe face £180m in extra red tap costs as they get swept up in new EU One-Stop-Shop VAT rules.
The new EU One-Stop-Shop rules, which will be introduced on July 1, are designed to stop an estimated designed to stop an estimated €7bn in annual VAT fraud by non-EU ecommerce sellers, mainly located in China, according to Alavera.
However, the EU One-Stop-Shop changes remove remove VAT exemptions for SMEs and shipments not exceeding €22 (£19), which means about 26,000 UK e-commerce sellers will have to register for VAT in an EU member state for the first time.
>See also: Where to find your £2,000 Brexit Support Fund grant
This will cost a majority of these companies at least €8,000 (£6,900) a year each, or roughly €208m (£180m) annually.
“Now we’re outside of the EU, [the UK has] been lobbed in with VAT-avoiding Chinese traders, and ecommerce companies will pay the price,” Richard Asquith, vice-president global indirect tax at Avalera, told the Financial Times.
UK e-commerce sellers will now have three options when trading into the EU:
Register for VAT in the country where they sell most of their goods, which the European Commission estimates will
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Where to find your £2,000 Brexit Support Fund grant
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small businesses that only trade with the EU can apply for a £2,000 grant through the Brexit Support Fund for help with importing and exporting.
The government has made £20m available for the Brexit Support Fund to help small businesses with changes to EU trade rules.
The Brexit Support Fund is meant to help Britain’s 6m small businesses cope with new customs, rules of origin, and VAT rules import that come into force from April and July.
>See also: Half of small business exporters struggling with new rules post Brexit
The existing Customs Grant Scheme will administer the Brexit Support Fund, which will open for applications in March.
What the government calls new import controls will come into effect in three stages up to July 1 2021 to allow traders and hauliers adjust to new red tape. More details can be found in the Border Operating Model.
Businesses do not have to complete new import declarations for up to six months, unless they are moving controlled goods.
Michael Gove, the Chancellor of the Duchy of Lancaster, said: “This new targeted funding will see small businesses get more of the practical support they need to adjust to the new processes and
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Where to find your £2,000 Brexit Support Fund grant
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small businesses that only trade with the EU can apply for a £2,000 grant through the Brexit Support Fund for help with importing and exporting.
The government has made £20m available for the Brexit Support Fund to help small businesses with changes to EU trade rules.
The Brexit Support Fund is meant to help Britain’s 6m small businesses cope with new customs, rules of origin, and VAT rules import that come into force from April and July.
>See also: Half of small business exporters struggling with new rules post Brexit
The existing Customs Grant Scheme will administer the Brexit Support Fund, which will open for applications in March.
What the government calls new import controls will come into effect in three stages up to July 1 2021 to allow traders and hauliers adjust to new red tape. More details can be found in the Border Operating Model.
Businesses do not have to complete new import declarations for up to six months, unless they are moving controlled goods.
Michael Gove, the Chancellor of the Duchy of Lancaster, said: “This new targeted funding will see small businesses get more of the practical support they need to adjust to the new processes and
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How to avoid paying £130,000 in VAT registration fees if you export to EU
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Businesses selling goods into Europe face having to pay for VAT registration in all 26 EU countries, costing up to £130,000.
Britain left the EU on January 1 and small businesses now have to register for VAT in each country they sell directly to customers in. Plus they will need to have a physical business representative in each country, and not just be brass-plate company.
Given that it costs between £3,000 and £5,000 to register for VAT per EU country, small businesses could be left with a bill of £130,000 just for the right to pay VAT in each territory.
>See also: Local authorities blame government for slow release of Covid-19 grants
Sean Glancy, VAT and indirect taxes partner at accountant UHY Hacker Young, said: “The risk here is that a UK business moving goods to consumers in, for example, Germany, Italy and Austria would have to register for VAT in all of these countries. If that multiplies across Europe, that is a lot of registrations, time, resource, and cost.”
The good news is that this is only until July 1, when the EU will bring in a one-stop-shop for VAT registration throughout Europe, which means UK businesses
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Europe’s small businesses call for three-month post-Brexit transition period
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Companies need a minimum three-month transition period for new regulation, even if a Brexit deal is agreed, say Europe’s small businesses.
SMEunited, the organisation which represents small businesses at an EU level, say businesses need a phased introduction to trading with Britain post-EU.
In order to allow SMEs necessary preparation time for new customs rules, transport requirements, phytosanitary tests and more, a phased three-month transition is required, says SMEunited. Otherwise, the new conditions will have serious repercussions for SMEs on both sides of the Channel.
>See also: How Brexit is going to affect your business – #1 imports
SMEunited warned many SMEs are struggling to adapt to the changing status of the EU-UK relationship. SMEunited has been encouraging its members to inform SMEs of the changes to EU-UK trade conditions, such as new customs rules and transport requirements.
Craig Beaumont, chief of external affairs at the Federation of Small Businesses said: “Some border checks and payment rules are already delayed to July, however small firms will need time to get to grips with the new requirements. We have asked the government to include in the deal a phased introduction of new trade arrangements for the most complex areas,
Hot Business News Today
Europe’s small businesses call for three-month post-Brexit transition period
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Companies need a minimum three-month transition period for new regulation, even if a Brexit deal is agreed, say Europe’s small businesses.
SMEunited, the organisation which represents small businesses at an EU level, say businesses need a phased introduction to trading with Britain post-EU.
In order to allow SMEs necessary preparation time for new customs rules, transport requirements, phytosanitary tests and more, a phased three-month transition is required, says SMEunited. Otherwise, the new conditions will have serious repercussions for SMEs on both sides of the Channel.
>See also: How Brexit is going to affect your business – #1 imports
SMEunited warned many SMEs are struggling to adapt to the changing status of the EU-UK relationship. SMEunited has been encouraging its members to inform SMEs of the changes to EU-UK trade conditions, such as new customs rules and transport requirements.
Craig Beaumont, chief of external affairs at the Federation of Small Businesses said: “Some border checks and payment rules are already delayed to July, however small firms will need time to get to grips with the new requirements. We have asked the government to include in the deal a phased introduction of new trade arrangements for the most complex areas,
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Businesses should become global employers after Brexit
by Anna Jordan • • 0 Comments
Experts are advising businesses to become global employers after Brexit. Leaders in tax, immigration, employment law, relocation and corporate spoke to businesses at the Brexit Consortium ahead of our planned departure on 29th March 2019. They say that for business interests to be safeguarded, it’s important for the government to be clear about what these
The post Businesses should become global employers after Brexit appeared first on Small Business.
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Innutra Expands In European Union
by Tina Williams • • 0 Comments
Innutra LLC announced the long awaited expansion and opening of the European Union for the Innutra products and opportunity. They have products on the ground in our warehouse in Europe, and they are in a final stage of the extensive process to certify, register and sell their products in all 28 EU countries.
Innutra’s expansion into the EU provides the company with an excellent opportunity for growth. “We are very excited that Innutra products and systems are going to be available to help the millions of people in need of better health in the EU.” said co-founder Jim Ayres. He continues, “The problem of obesity and the growth of health concerns such as diabetes, hypertension, and other ailments is not isolated to the US. This is a big step for Innutra’s global expansion efforts to change the world.”
Innutra, providing innovative nutrition and sustainable weight loss products, that are easy to use and very effective. Look for big changes overseas with Innutra’s life changing nutritional products.
Innutra will have more announcements as they enter the pre-launch phase for recruiting and building the distributor force in the EU.