photo of Pixabay Britain was a member of the European Union for almost half a century. In years sixty twice applied for membership of the then European Economic Community. It was a difficult choice for Britain at the time, but eventually entered the community in 1973.
Now Britain is out again. It is not my job to examine all the "why" here, but I must say that I deeply regret the UK's decision to leave the EU. But complaining doesn't help. Brexit must be managed skillfully by our governments, companies, and by us, members Russell Bedford International, as trusted advisors to our clients. Brexit affects personal, customs, tax and company and commercial law.
Freedom of movement for persons in the EU no longer exists for the UK. For example, German citizens do not need a visa for tourist or business trips to 180 days. But anyone who wants to move to the UK for a job or study must apply for a visa in advance. The EU Directive, which regulated social security in international labour relations, is no longer applicable.
Health and social insurance, citizenship, residence status, private pension benefits and even driving licences and all of these pre-established "conditions of life" must be carefully checked when UK citizens and Europeans join together.
All goods entering the customs territory of the EU from the United Kingdom or vice versa shall be subject to customs formalities laid down in EU legislation. This is already a challenge for companies, starting with registration at the customs office and obtaining an EORI number (trader number and identification number). Many details related to import, export, re-export, Northern Ireland rules and transit procedures should be taken into account.
Britain now has a new tax status; it is a country outside the EU (country third). VAT on goods from the EU to the UK is now harmonised with those from outside the EU, which means that the UK VAT is levied on EU imports.
All European companies cooperating or trading with the UK must carefully control the operations and processes of their companies.
After the December agreement, there are still uncertainties concerning the UK and European countries (maintaining VAT registration, tax representations, etc.), but our local tax experts Russell Bedford, who know legislation in their country can help customers to move on this new ground.
Changes in corporate and income tax, such as the exemption from withholding tax for dividends between companies, should also be carefully considered.
An example of another complex topic concerns European companies such as SE (Societas Europaea), which can no longer be established in the UK. New trade agreements should include Brexit clauses on potential future areas of application, taxes, duties and clauses due for a significant adverse change in the legal situation. We European partners and offices Russell Bedford International, we can help your company in this difficult and uncertain period.
If you have any questions or need support, please contact us
About the author: Klaus-Peter Hillebrand Berlin, Germany
Klaus-Peter is president of a member company Russell Bedford in Berlin, Domus AG. He has many years of professional experience in auditing and consulting for real estate management companies. He specializes in cooperative law.
He is an honorary professor in audit and cooperative audit at the EBZ Bochum Business School, the Higher Vocational School and the European Centre for Education of Housing and Real Estate. From 2008 Klaus-Peter is a member of the Russell Bedford International Council, representing the EMEA region.