BREXIT - how to prepare for the end of the transition period

2020-12-11 14:22:34

BREXIT will in one way or another affect all companies and entrepreneurs registered in the UK. Since the country will leave the European Union, it will become a so-called “third country”. Trading companies selling and purchasing goods from the European Union will feel the most significant changes. Also, manufacturing companies that purchase raw materials from other EU countries will feel it. As we know, within the European Union, there are no borders and no customs clearance is required, which will change when the United Kingdom leaves the European Union.

This will mean the following:

  • When importing goods or materials into the UK, or exporting goods from the United Kingdom, or when goods are in transit through the UK, these goods/materials will be subject to the customs clearance
  • Additionally to the customs clearance procedures, you may be required to provide goods/materials safety and security information
  • When importing or exporting special types of goods (i.e. waste, hazardous chemicals, genetically modified organisms) it will be necessary to obtain special licenses
  • Importing / exporting goods that are subject to excise duty (such as alcohol, tobacco or fuel), you will need to follow additional formalities
  • Regarding transactions with the United Kingdom, you will have to comply with different VAT regulations and procedures than with dealings within the EU
  • For those who are utilizing any materials or processes originating from the UK, they will no longer fall under the “original” category in accordance with the current EU regulations

If no agreement is reached between the EU and the United Kingdom by the end of the transition period, the changes could be even more significant. In this case, in addition to the above listed procedures:

  • It will also be necessary to pay the customs duty on goods you bring from the UK to the EU
  • You may be subject to a quota, when certain goods from the United Kingdom will enter the EU

It is advisable to begin preparation for these changes in advance, to avoid the risk of serious complications for your business after the transition period ends.

The most optimal solution will be to move the business jurisdiction from the UK to the EU.

What will the transfer of business to the EU give you? Let review the key benefits:

  • Company registration in Europe will allow you to become a fully legitimate participant of the international trade, permitting to conduct a direct commercial activity in the EU, and expanding opportunities and sales market
  • The goods will be sold in any EU country without a need for obtaining additional certificates and permits
  • Common VAT system for the whole EU, which provides VAT refunds
  • Having your company in the EU will let you to have accounts in European banks, which is very prestigious and gives you the opportunity to receive preferential loans for starting or further developing your business
  • Visa-free regime (in case of moving to the EU)
  • Simple and affordable registration.

Why choose the Czech Republic? For:

  • Simple taxation system and low taxes
  • Advantageous geographical location
  • Low costs for services and workforce
  • Ability to register a company remotely without your personal presence in the Czech Republic 

What we offer:

  • Preparation of documents required for registration process and for doing business in the Czech Republic
  • Providing of a wide range of additional services in the areas of a financial optimization and legal support
  • Comprehensive accounting services and business tax advising

Prices:

  • Company registration (one year basic accounting services included): 29 500 CZK
  • VAT registration: from 3 000 CZK
  • Comprehensive accounting services:
    • Non-VAT payer company: from 500 CZK
    • VAT-payer company: from 2 000 CZK
  • Administrative assistance: from 500 CZK / hour
  • Tax consulting: from 1 500 CZK / hour

The detailed information about our prices can be found here: https://domytax.cz/ru/prices

DoMyTax has been specializing in accounting services and legal support for companies abroad for 10 years. During this time, we have gained experience and developed the necessary business networks for the most effective delivery of services. If you are planning to register a company in the EU / Czech Republic and need professional advice, please contact us for an individual consultation.

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