Are you ready for BREXIT?
It is official! After a series of delays, Brexit will happen! The UK will officially leave the European Union on January 31, 2020, entering into a Transition Period scheduled to last until December 31, 2020.
What is the significance of Brexit for your company’s trade with the UK?
During the transitional period, EU-UK trade rules remain unchanged. For Danish companies, this means that there will be no duty on goods from the UK and that they can trade with the UK without being registered as an importer and / or exporter.
From 1 January 2021, Danish companies must comply with the general rules for third countries (countries outside the EU) when dealing with the UK, unless the EU and the UK have already concluded an agreement on this. It can have a major impact on your company’s customs, tax, tax and VAT conditions, and it may require preparation by January 1, 2021.
To help your business, the Danish Customs Agency offers a number of guidance services:
- If you have questions about trading with the UK after Brexit, you can call the Customs Authority’s Brexit hotline at 7222 1212.
- At skat.dk/brexit you can get an overview of the relevant rules and guidelines in the customs, VAT, tax and tax areas for trade with third countries.
2020: Transition Period
The EU and the UK have agreed on a withdrawal agreement to set the conditions and rules for how the UK leaves the EU. On 31 January, the UK leaves the EU and thereafter there is a transitional period from 1 February 2020 to 31 December 2020.
During the transitional period, EU-UK trade rules remain unchanged. For Danish companies, this means that there will be no duty on goods from the UK and that they can trade with the UK without being registered as an importer and / or exporter.
During the transition period rules for import and export will remain unchanged. There still won´t be applied customs on goods, so you can still ship to and from UK like before.
2021: What happens next?
From 1 January 2021, Danish companies must follow the general rules for third countries (countries outside the EU) when dealing with the UK unless the EU and the UK have entered into an agreement on something else before then.
The fact is that UK and EU can still manage to make an agreement before these changes will be introduced in 2021.
You can find more answers to frequently asked questions about Brexit on The Danish Customs Agency´s website