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Brexit – End of Transition Period

Malta always had a good relationship with the United Kingdom. However, what will happen now that the UK left the European Union? Yes, that is right, the UK left the EU after the conclusion of the withdrawal agreement, back in February of this year.

Will an agreement be reached? As from 1st January 2021, new rules will apply, and everyone needs to prepare for different scenarios. Once the transition period ends, the UK will no longer be bound by EU law, and will fall outside the scope of the EU’s Single Market and Customs Union.

The government of Malta has a Readiness Action Plan since a lot of EU members’ administrations had to act promptly for the changes that will impact future engagements between the EU and the UK.

Any business that moves goods from or to the UK will be subject to new formalities and regulations.

The transition is still in process, but it will end soon… very soon; however, many EU member states, including Malta are showing that the preservation of status quo is of their utmost importance.

The UK has left the building

The UK has left the EU and it no longer participates in decision making within the EU. EU benefits will no longer continue to apply after the end of the transitionary period. The EU is preparing for any consequences should the transition period end without a formal, ratified agreement for our future partnership.

The Commission published a Communication “Getting ready for changes”, which provides a sector-specificoverview of the main areas where changes will be inevitable. The Communication sets out measures that national authorities, businesses and citizens should take in order to be prepared for these changes.

Malta also issues a Government Readiness Action Plan which details out the government’s contingency plans.

Read more:

 

Malta Enterprise Brexit Scheme

The application for the Malta Enterprise Brexit Scheme (2019), which is intended to assist in the dependency on the British Market in terms of both importation and exportation, includes a cash grant covering 50% of consultancy services provided by external consultants.

Businesses are required to quantify their activity in and/or with the British market and the level of dependency on such market. Businesses are to indicate the impact of Brexit on their performance and success rate.

For more information, read more here: http://maltaenterprise.com/support/brexit-support-scheme

Supporting Businesses

Businesses be ready! – Brexit will affect your company if:

  • You sell goods or supply services to or from the UK;
  • You move goods through the UK; or
  • You trade under preferential schemed with UK material and goods.

Your company will now need to file customs declarations when importing, exporting or moving goods to – from-through the UK.

Also, a special license will be needed for the importation and exportation of certain goods, such as waste and hazardous chemicals.

Moreover, additional formalities will apply in the importation and exportation of excise goods.

Different VAT rules and procedures will apply when transacting with the UK and so the government of Malta encourages all economic operators to initiate EORI (Economic Operators Registration Identification) * to enable traders to have a unique reference number which is to be used for all Customs related activities within the EU.

*The EORI number is a reflection of the VAT number. The VAT act, chapter 406 of the laws of Malta, states that the VAT number can be assigned to a person (natural or corporate).

Certain business may also consider becoming AEO (Authorised Economic Operator) which is a standard issued by a Customs Administration. Such businesses will be recognised as trusted traders. There are several trade facilitation incentives that AEOs can take advantage from.

In this regard business shall now identify all necessary measures to prepare for Brexit’s impact. This shall also include communication with the Competent Authorities and following advice issued by the relevant advice centres to be informed on the next steps.

For more information, please visit www.brexit.gov.mt

Our Team

Our tax team can help you plan the most effective tax structure. Our corporate team can assist you with all your company incorporation needs. Our relocation team can assist you with obtaining the necessary work and residency permits as well as help you look for living and office space.

In other words, partnering with Dr. Werner & Partner would definitely ease and enhance your Brexit Strategy.

For more information, kindly contact us on +356 21377700 or .

Disclaimer: The above-mentioned article is simply based on independent research carried out by Dr. Werner and Partner and cannot constitute any form of legal advice. If you would like to meet up with any of our representatives to seek further information, please contact us for an appointment.

 

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Author of the post

Dr. Rebecca Mifsud

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