rchelicopterhub.com / rchelicopter.hu
01 January 2021

The UK leaves the EU
How orders affected?

In a final rush the United Kingdom made a deal with the European Union as late as Christmas Eve, just days before the transition period has ended - this is known by everyone. But how this affects an order from the UK to an EU country?

Many ordered their kits and spare parts from UK retailers to another EU countries, which was like a local trading with no extra bureaucracy. This is changed now, since midnight new rules apply, these orders count export-import tradings from now on. The UK shop exports items to an EU country. And indeed, there are no tariffs and customs, as the deal between the EU and UK declares that, but this is not the same as it was before. 

At least there is custom declaration, export-import processes, which might delay all these orders, these deliveries can take days longer. And this is not the only change. As we understand the new rules, the UK VAT will not take part in these cases, technically the UK retailer will sell the product to the EU with no VAT, consequently the customer pays about 17 per cent less at the checkout than before. Sounds good, but...

During the import procedure the VAT regime of the destination country applies, and the calculated VAT has to be paid locally like any other imports. This is good news for example in Germany, where the standard VAT is 1 per cent less than in the UK, but 21 per cent to be paid in Spain, 23 in Poland, 25 in Sweden and an eye-watering 27 per cent will go to the national budget in Hungary.

Perhaps these change will have a negative impact on UK businesses, even loyal EU customers will very likely turn to EU shops instead of dealing with extra bureaucracy, longer deliveries not to mention extra costs.