United Kingdom: Brexit is not a hindrance to trade

On December 30, last year, British Prime Minister Boris Johnson signed the Agreement on Trade and Cooperation with the European Union (FTA), and with the arrival of 2021, the document has already entered into force. According to the authorities, the agreement will be the beginning of excellent relations between the UK and partner states in the European Union.

Recall that since January 1 of this year, Britain has fully completed the Brexit process and left the ranks of the EU members, in connection with which the state needs to build its own trade policy, but not as a member of the EU.

The agreement provides for many important provisions. One of them sets out rules for the import and export of goods from and to the EU. These customs procedures will be subject to the same rules as in transactions with third parties. British companies selling goods in the EU must register with the recipient countries in order to collect value-added tax. The UK itself has introduced a rule according to which companies do not have to pay VAT immediately when importing goods from the EU and other countries. VAT must be declared in the tax return and can be deducted immediately.

As for the EU tax directives, some of them cease to apply to the UK. From now on, the provisions of the EU Directive on Interest and royalties, on subsidiaries and parent companies do not apply to the state. At the same time, it is assumed that the termination of these documents will not have a strong impact on Britain due to the fact that it has a number of bilateral tax agreements with EU member states.

· Links to sources: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/948119/EU-UK_Trade_and_Cooperation_Agreement_24.12.2020.pdf

· https://ec.europa.eu/info/sites/info/files/eu-uk_trade_and_cooperation_agreement-a_new_relationship_with_big_changes-brochure.pdf