What Needs to Be Done
Companies should review how their export process is set up, and if the company mentioned in box 2 of their export declarations is in fact established in the European Union. If not, arrangements should be made to have an exporter of record that is established in the European Union.
For EU companies: If you sell to non-EU companies, on an Ex Works basis, the non-EU company is responsible for exporting the goods, and can no longer act as the exporter.
For non-EU companies: if you buy goods from EU companies on an Ex Works basis, you need to make arrangements with your supplier or a third party, so they can be the exporter of record.
Brexit Implications
When the transition period ends December 31st 2020 the United Kingdom will no longer be part of the European Union. Companies established in the United Kingdom will then become non-EU companies, and can no longer be the exporter of record.
VAT Implications
Non-EU companies that can no longer be mentioned as the exporter can run into issues with their VAT administration. The export declaration is often used as proof that goods have been exported when you are using a 0% VAT rate.
If you have any questions about exporting to or from the European Union, contact one of our specialists.
