{"id":62164,"date":"2019-10-05T07:27:36","date_gmt":"2019-10-05T07:27:36","guid":{"rendered":"https:\/\/blog.hellotax.com\/blog\/?p=62164"},"modified":"2019-10-29T17:06:31","modified_gmt":"2019-10-29T17:06:31","slug":"brexit-guide-e-commerce","status":"publish","type":"post","link":"https:\/\/hellotax.com\/blog\/brexit-guide-e-commerce\/","title":{"rendered":"Brexit & e-Commerce: Guide for Online Sellers"},"content":{"rendered":"\n

Will there be a soft or a hard Brexit? We will see if there is another delay but it seems that we are close to a final decision now. Find out how VAT and trading regulations will change when the United Kingdom leaves the EU without a deal and what that means for UK and non-UK sellers.<\/p>\n\n\n\n

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UPDATE<\/strong>: Brexit delayed until 31 January 2020 + possible new elections in 2019 shall make a No-Deal Scenario very unlikely.<\/p>\n\n\n\n

Brexit: What\u2019s the current situation?<\/strong><\/h2>\n\n\n\n

On 02.10.2019, Boris Johnson submitted what he said would be the final offer to the European Union<\/strong>. The backstop, preventing a hard border to Ireland, is still one of the main issues that can\u2019t be agreed on.<\/p>\n\n\n\n

A fair and reasonable compromise.<\/p>Boris Johnson<\/cite><\/blockquote>\n\n\n\n

At the Conservative Party conference in Manchester, the PM explained that in case that the EU will refuse this final offer (that includes a backstop replacement plan), the UK will leave the EU on October 31 – with or without a deal!<\/strong><\/p>\n\n\n\n

If the EU and the UK will come to an agreement is all but certain. As a no-deal-scenario becomes more and more likely, here is what online sellers should know, which actions might be required and how to make the best out of it.<\/p>\n\n\n\n

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No-Deal Scenario: Consequences for UK Sellers<\/strong><\/h2>\n\n\n\n

First, Amazon and FBA sellers don\u2019t have to worry. Amazon is committed to supporting selling in the UK and across Europe. The online giant recommends to prepare by moving inventory for 4-8 weeks <\/strong>to the UK and to the UK border.<\/p>\n\n\n\n

However, Amazon stated in its Brexit Guidance<\/a> that the UK government advises businesses to prepare for various potential outcomes<\/strong> after the UK has left.  <\/p>\n\n\n\n

NOTE<\/strong>: All inventory should be moved by 17th October 2019 to avoid possible delays.<\/p>\n\n\n\n

Shipping into the EU<\/h3>\n\n\n\n

Theoretically, after the Brexit, for UK sellers who are selling within the UK nothing will change. When it comes to selling to abroad, e.g. from the UK to Germany, this will then be treated as an import<\/strong> \u2013 an import into Germany. This means that the customer (when the product value is more than 25\u20ac) needs to go to the post office or the customs to pay import VAT and that\u2019s something customers don\u2019t like.<\/p>\n\n\n\n

How to avoid import VAT for your customers<\/strong><\/h3>\n\n\n\n

Store\nlocally! If you store outside the UK, e.g. in France, you are storing in a country\nthat is part of the European Union and the \u201cusual\u201d tax laws apply. This mean no\nimport VAT for the customers and no walk to get the parcel and pay the taxes.<\/p>\n\n\n\n

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Goods movements<\/h3>\n\n\n\n

The good news is, regardless of the outcome, domestic\nFBA fulfilment will remain unchanged<\/strong>. This means that:<\/p>\n\n\n\n