Updated – 01/07/2021 – IOSS details added
Brexit has now become a reality and the transition period has ended.
A number of customers have asked how this will affect our exports to the EU and beyond so please take a look at the following summary to understand any impact.
Currently, we do not anticipate any price changes due to Brexit. We believe our costs should be largely unaffected because we manufacture all our products in the UK. Increases in the prices of raw materials may have an effect but we expect these to be minimal.
Sales within the UK (including Northern Ireland for domestic use)
There is basically no impact on these sales.
Sales to the EU / VAT / IOSS
Since the beginning of July 2021 the EU introduced the IOSS scheme for online traders. This means that sales valued at less then £135.00 / 150.00 Euro from non EU countries (including the UK) can have the VAT applied at the time of purchase at the customers domestic rate to avoid the need for VAT payments to be made when the goods are delivered. However, the scheme is not mandatory and the number of our products which fall below this price threshold is so small that we do not intend to use the IOSS scheme. Under the circumstances our prices for sales to the EU will remain 100% VAT free and we draw your attention to the details below:
Sales to the EU will no longer have UK VAT added. All our invoices, whether to a trade or retail customer will be VAT FREE. Trade discounts will continue to be applied to trade accounts
The Brexit agreement between the UK and the EU for goods of GB origin means there are:
- NO Tariffs
- NO Import taxes
- NO Duties
When the goods arrive in the destination EU country you will be charged your local VAT rate. This applies to both trade and retail customers and will apply to all sales, including ones below the IOSS threshold value of £135.00 / 150.00 Euro. You may also be charged a small handling fee by UPS or the postal service.
Trade customers will have to recover the VAT through the normal channels.
Sales to Norway and Switzerland
These regions remain unaffected by the changes – We will continue to export with no UK VAT added. The rules will be the same as those outlined above for the EU
Sales to the Rest Of The World
Exports to the rest of the world are unaffected by the Brexit situation. However, as the UK continues to establish independent trade deals with the countries outside the EU we may see improved trade relations and the relaxation of tariffs and abolishment of things such as import duty – we will see…..