What is a no-deal Brexit?
No-deal Brexit, to put it simply, means that the British government cannot reach any satisfactory and correct agreement with the EU before March 29, 2019, and leaves the EU, referred to as "No Deal Brexit".
What impact will a no-deal Brexit have?
"No-deal Brexit" means there will be no transition period after Brexit, EU law will immediately no longer apply to the UK, the trade relationship between the UK and the EU will return to the framework of the World Trade Organization, and both sides will face the problem of increased tariff levels and trade barriers between each other. "No-deal Brexit" is disadvantageous to both the UK and the EU.
For VAT:
1. Whether it is VAT or tariffs, the UK is equivalent to non-EU countries
That is to say, when goods enter the EU market from the UK, British companies need to declare imports and pay the VAT of the importing country, and goods from EU countries entering the UK also need to go through customs declaration and clearance procedures.
2. UK cross-border sellers do not have a remote sales policy
Without the remote sales policy, cross-border sellers will also need to pay local taxes on goods sold from the UK to EU countries. Therefore, for goods exported from the UK to EU countries, cross-border sellers must not only have the UK EORI number and the UK VAT tax number, but also register the EU EORI number and the country's VAT tax number.
This is the end of this issue's introduction to the knowledge about no-deal Brexit. If you want to get more information about no-deal Brexit, please pay attention and we will continue to answer your questions~
