Brexit, what does it mean for companies in Sweden?
Brexit, what does Brexit mean for companies? The UK left EU on January 31, 2020. Next year, from January 1, 2021 the UK will most likely also leave the EEA (European Economic Area). Here we address some issues that may be relevant, but since it is uncertain at what will apply, it is good to follow the development and prepare you and your company. However, until December 31, 2020, the rules on trade with the United Kingdom will not change. After that, there is a great risk that the UK will crash out of the EU without a trade agreement.
Brexit summary points
Brexit - what happens January 1, 2021 around trade in goods?
Trading of goods to and from the UK
- Transport commenced before 1st Jan and ending after = Seen as European sales / EU purchases
- Transport commenced after the turn of the year = Export and import
Trading of goods to and from the Northern Ireland
- European sales / EU purchases also 1st of January.
Brexit - what happens January 1, 2021 around sales / purchases of services?
Services –UK/ Northern Ireland
- Treated as a country outside the EU
- No periodic compilation required
- The last perioden for 2020 - to be submitted in January 2021
Refund of UK VAT for 2020
- Apply in the e-service no later than March 31 2021
- E-service for Northern Ireland VAT on goods can be used also in the future
- VAT-nummer kan inte kontrolleras
Brexit-tips on preparations - brush up on exports and imports
- Apply for an Eori number at the Swedish Customs
- Export / import of certain goods
- Permits, certificates, certificates, customs fees?
- Review transports / warehouse management
- Contact customers / suppliers in the UK
- MOSS / OSS does not apply to the United Kingdom
- Review e-commerce, TBE services / ID state?
- Apply for Brexit support?
The United Kingdom is the first country to request withdrawal from the EU. On January 31 2020, they left the EU with an approved exit agreement. This means that they have a transition period until 31 December 2020 when they leave the EU completely. During this transitional period, an agreement will be negotiated between the United Kingdom and the EU on what applies after January 1, 2021. During this period, most of the VAT and customs duties and more will work as usual. However, the United Kingdom will not participate in the EU decision making bodies.
Other things applicable at a hard Brexit
There is still a risk that we will be without an agreement, or with a substandard agreement, at the end of the year, December 31 , 2020. This will for example mean:
- You now need custom clearance documents for export of goods sold to the UK.
- Purchases and sales of services need to be reported in the same way as for countries outside the EU.
- Sales to companies in the United Kingdom must not be reported in the periodic summary. Verifying the VAT number will not be possible.
- The rules on profit margin taxation of travel services cannot be applied to the United Kingdom.
It will not be possible to apply for a refund of British VAT via the Swedish Tax Agency's portal once the UK has left the EU.
- VAT must not be charged by the seller when exporting to the UK. Documentation must also be provided that the product has been exported from the EU.
- It may be a good idea to apply for a registration number with the Swedish Customs right now if you do business with the United Kingdom. The Swedish Customs has a page about Brexit and what the implications for Swedish trade are.
Our consultants keep track of Brexit and what applies to you in Sweden
What that means for you can not be said today. But something you can do is think about, prepare and follow the reports on what is decided. The negotiation has been going on for a long time. The government's website follows the development of Brexit.
Accountor's consultants are also following the development of Brexit. Accountor's consultants can help you within most areas within finance, such as payroll, accounting, company services and tax advice. Regardless of which areas will be affected by Brexit, we are keeping track of that for you. Feel free to contact us if you would like to know more about how we can help you.