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What does Brexit mean: Frequently Asked Questions on the impact of Brexit

What is the difference between Brexit, Hard Brexit and No-deal Brexit? What is the Brexit impact on Business and Mobility & Relocation industry? Brexit risks and many other related topics. Check out our answers on frequently asked questions here.

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What is Brexit: FAQ on Brexit impact 2020

What does Brexit mean?

Brexit means Britain is exiting the European Union. Brexit is the result of a referendum in the United Kingdom held in 2016 which produced a result of 52% of people in favour of Brexit and 48% in favour of remaining in the European Union. 

We are now in a so-called transition period. This is currently scheduled to end by the 31st of December 2020.

What does Hard or No-deal Brexit mean?

Hard Brexit, as opposed to a soft Brexit, means leaving the European Union single market and leaving the Customs Union.

The UK government’s policy is to leave the single market and the Customs Union, end freedom of movement with the EU and no longer be subject to the European Court of Justice and to EU rules and regulations.

What does the EU want from Brexit or Britain? 

The EU’s primary objective is to maintain the integrity of the single market.

While the EU has been happy to enter negotiations, their general statement is that the UK can’t just walk away from the European Union while still expecting to have all the benefits of the single market and the Customs Union. The expression that was used earlier in the negotiations was that Britain could not “cherry-pick”.

How will Brexit impact the Mobility & Relocation industry?

The mobility industry is facing immediate new hurdles in terms of moving people around. One part of the industry will benefit from this because immigration controls mean that people will need support with visas and work permits. But freedom of movement disappears, and therefore, there are new challenges and delays in moving people between the UK and the European Union.

What would Brexit mean for British employment law?

Very little should change in practice because the UK government had promised that Britain will not reduce the employment rights that are fundamental to being part of the European Union. So current employee rights will be protected.  But it remains to be seen what will happen in the longer term.

How would Brexit affect small businesses and, more specifically, startups?

For UK entrepreneurs there will be restrictions in the future in selling products and services in mainland Europe. The Brexit supporters will be saying that new opportunities will now exist in the United States and in India and China. So the fact that you lose some access into European Union countries will be more than offset by these deals we’re going to get into with other countries.

What does Brexit mean for my customs matters?

At the moment, the United Kingdom (UK) still belongs to the EU. However, this will change; the UK will leave the EU.

In Brussels, the EU and the UK are currently negotiating on a trade deal. While there is a transition period now, there is still a  ”hard Brexit” option if no agreements are reached by 31st of December. Consequently, prepare yourself for this as well as possible.
When the UK departs the EU, different customs laws will apply
What does this mean in real terms? The following will apply after Brexit, declaring goods you import from the UK, or export to the UK.

How should you prepare:
Apply (or have it done for you) for an EORI number. You will need this number when you submit a customs declaration, or when you apply to Dutch Customs for an authorisation. Please see: Applying for an EORI number.

Make sure that you can submit your declaration to Dutch Customs.
You can have your declaration submitted for you by a customs agent. Arrangements can be made within a couple of weeks. You don’t need any extra in-house ICT expertise.
If you are going to submit your declarations, you need an ‘Electronic message exchange registration’. You can download the application (only available in Dutch).

Find out whether you need any authorisations.
In addition to these customs laws, you might also encounter other formalities, such as inspections of animal products or further rules for the export of waste material.

Getting well adjusted for Brexit will take from up to two months to over a year. It depends on how you submit your declaration: By your self or by a customs agent. If you do it yourself, you have longer preparation time. Waiting too long with these preparations will only increase this time even more.

Brexit and VAT, the intra-community regulations no longer apply

Making purchases from suppliers in the UK after Brexit? For this, you must submit an import statement and pay VAT to Customs. You could opt for making a VAT declaration instead of paying to Customs? Then ask for a ‘Vergunning Artikel 23’ (Article 23 authorisation) from your tax department.

How will a no-deal Brexit affect me?

EU citizens in the UK can apply for settled status, allowing them to remain in the country even if there is a no-deal. UK expats in the EU are advised to register as residents of the country in which they live.

UK citizens travelling to the EU will need to ensure passports are valid for at least six months on 31 October and will require an international driving permit if intending to use a car.

European Health Insurance Cards (EHIC) will no longer be valid
Pet passports will also no longer be valid.

Bank cards

If you have a UK bank account and intend to use your bank card to pay for goods and services while you are in the EU as well as Iceland, Liechtenstein and Norway, the government has warned that it may become more expensive.

The same will apply vice-versa.

You may need to check medication is available and it may be more expensive

Ministers and NHS leaders say every effort is being made to ensure there will be enough medicines available in the event of delays to imports from the EU.

The Royal Pharmaceutical Society warned that pharmacists were struggling to obtain common medicines – including painkillers and anti-depressants.

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