11 Feb 2019
If a No Deal Brexit occurs, from March 30th onwards, the UK will no longer be a part of the EEA. A requirement of all companies is that they must have at least one EEA director. Therefore, companies which only have UK resident Directors will not comply with this requirement post Brexit. There are a number of options available to correct this:
- Appoint an EEA resident Director
- Take out a section 137 Bond. These bonds must be renewed every two years
- File a Form B67 – where a company has a real and continuous link with one or more economic activities that are carried on in the State, it may apply for an exemption to the EEA resident Director requirement. Approval from the Revenue Commissioners is also required as part of this application.
It is hoped that a grace period would be given to allow companies affected by the potential changes to get their affairs in order, but as of yet no further information has been announced.
At Anne Brady McQuillans DFK, we can assist with any of the above options.
Goods & Customs
Currently goods can be shipped freely between EU countries without the requirement for any additional registration requirements. In the event of a No Deal Brexit, as of March 30th the UK will no longer be part of the EU and as such and goods transported or from the UK will be subject to different rules.
Businesses who import goods from or export goods to countries outside the EU are required to have an Economic Operators Registration and Identification Number (EORI number). Following their exit the UK too, will be outside the EU and therefore any business which import or export goods to the UK will need to apply for this EORI number. Registration is simple and can be done through ROS, or contact us for assistance.
Another consideration to be made regarding the UK’s exit from the EU is that any supply to businesses in the UK will no longer be an intra EU supply. Instead, the supply of goods or services to the UK will be outside the scope of VAT. Therefore, no VAT would be chargeable on the supply of goods or services to the UK.
Concurrently, where goods or services are purchased from the UK, VAT will not be charged by the UK company, however VAT will become payable at the point of entry.
Minister Paschal Donohue has announced that transitional measures relating to the payment of VAT on import of goods will be put in place from March 30th. This will introduce a system of postponed accounting which will alleviate any immediate cash flow issues businesses may incur on the sudden change in rules relating to importing goods from the UK. Further details on the scheme will be issued in due course.
The Department of Business, Enterprise and Innovation’s website contains helpful advice
on what businesses can be doing to make themselves Brexit ready. It can be accessed here
Should you have any queries in relation to the above, please do not hesitate to contact:
Niall Grant - firstname.lastname@example.org
Stephen White - email@example.com
This publication has been prepared only as a guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this publication.