{"id":64511,"date":"2020-02-01T18:43:03","date_gmt":"2020-02-01T17:43:03","guid":{"rendered":"https:\/\/blog.hellotax.com\/blog\/?p=64511"},"modified":"2020-02-01T19:25:51","modified_gmt":"2020-02-01T18:25:51","slug":"brexit-3","status":"publish","type":"post","link":"https:\/\/hellotax.com\/blog\/brexit-3\/","title":{"rendered":"Goodbye, Britain! What does the Brexit mean for online selling in Europe?"},"content":{"rendered":"\n

So, it has happened. As of 01.02.2020, Britain is no longer part of the EU. After much back and forth, the Brexit is over. At least for now. But what does this mean for e-commerce and online selling in Europe?<\/p>\n\n\n\n

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What are immediate consequences for online sellers?<\/h2>\n\n\n\n

Amazon.co.uk is one of the most popular Amazon marketplaces in\nEurope<\/a> \u2013 both for buyers and sellers. Especially companies from overseas tend\nto start selling in the EU from or in the UK. <\/p>\n\n\n\n

That\u2019s why many online sellers might worry a little\nbit now how the Brexit will impact their sales. <\/p>\n\n\n\n

But good news first<\/strong>: for the moment, there won\u2019t change anything. With 1\nFebruary 2020, the transition period<\/strong> has started. Everything will stay\nlike it is until the end of 2020. <\/p>\n\n\n\n

The UK will still be part of the European single\nmarket and customs union until the end of the year. That means all regulations\nwill stay the same and no customs control or customs duties are to be expected.\nAt least for now.<\/p>\n\n\n\n

Brexit transition period: Duration & Regulations<\/h2>\n\n\n\n

The transition period will end on 31.12.2020<\/strong>. Until then, the EU and the United Kingdom can focus on new laws, rules and regulations that will determine Britain’s economic relationship with the European Union after this period ends.<\/p>\n\n\n\n

Duration of the transition period:<\/strong><\/h3>\n\n\n\n

As just mentioned, the transition period will last until<\/strong> 31 December 2020<\/strong>. If no agreement can be found, this could be extended for 1 or 2 years. This is only possible if both the EU and the UK agree on that before 01 July 2020. <\/p>\n\n\n\n

Regulations during this time frame:<\/strong><\/h3>\n\n\n\n

As long as we are in this transitional period, all\nlaws regulations will stay active as they have been before the Brexit. That also\nincludes EU law and therefore VAT<\/a> and customs\nregulations as well. <\/p>\n\n\n\n

If no agreement can be reached within this time frame, this would most likely lead to a hard Brexit<\/strong>. In this scenario, EU law will no longer apply for the UK and all current trading, customs, and other European regulations, like intra-community supplies, are no longer existent. More about that later.<\/p>\n\n\n\n

How the Brexit affects Amazon FBA sellers<\/h2>\n\n\n\n

Amazon clarified on their website<\/a> that for now, the no-deal Brexit has been avoided and during the transition period, all Amazon sellers can continue with doing their business just like before.<\/p>\n\n\n\n

Pan-European FBA will still proactively transfer inventory across Europe, and the European Fulfillment Network (EFN) will continue to fulfil cross-border orders.<\/p>Amazon<\/cite><\/blockquote>\n\n\n\n

It was also stated that FBA sellers do not need to send their inventory to both sides near the border to prepare for a potential disruption. There could be some irregularities towards the end of the year, but Amazon does not know how the Brexit will develop and rash skip actions have never been worthwhile.<\/p>\n\n\n\n

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How will the Brexit\ncontinue in 2021?<\/h2>\n\n\n\n

To answer these\nquestions, we thought about creating a list with possible scenarios but at the\nmoment, we cannot predict what it well be like by the end of this year as there\nare so many variables. The question rather is if the EU and the UK can agree on\nthe withdrawal agreement. This will decide whether there will be a deal or a\nno-deal scenario for the future.<\/p>\n\n\n\n

The goal in this\ntransition period is to find a proper withdrawal agreement for both sides. If\nthat fails, there will be a hard Brexit and this would change the trade between\nthe EU and the United Kingdom completely.<\/p>\n\n\n\n

No-Deal Brexit: VAT, customs & other changes<\/h2>\n\n\n\n

Nevertheless, we will\ntake a closer look on the no-deal scenario. If, unfortunately and unexpectedly,\nno agreement can be reached, then the hard Brexit is inevitable<\/strong>. <\/p>\n\n\n\n

And this would mean\nthat EU law is no longer applicable in the UK and that the United Kingdom is no\nlonger part of the European internal market and of the customs union. And that\nin turn would mean:<\/strong><\/p>\n\n\n\n