How New Brexit Agreement Between The UK & The EU Affect UK Sellers

Published On - January 20, 2021

Yahya Jahanzeb Latest Update
Brexit agreement

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Brexit agreement

Read and find out how this new Brexit agreement will affect marketplaces.

The 1st of January has come and gone and with a major update sent to the UK sellers by eBay and Amazon. This update is about the agreement between Great Britain and the EU.

According to the newspaper – The Guardian, the products sold between the EU and the UK do not have any tariffs imposed. Therefore, next, it is quoted that, “there will be considerably more bureaucracy”.

For further details on this update, visit the UK Government’s Brexit checker.

Brexit law

Moreover, it is also seen in the newspaper that the rule to discontinue free-movement certainly means that business travel between the EU and the UK will be changed. It will no longer be the same as it is currently. It will turn out harder.

Whereas, also find out below what eBay UK notified the sellers in a recent announcement.

So eBay UK said that:

  • Until the tariffs are not applied generally, lots of other rules will keep on change.
  • For example, customs processes will be changed, and new rules will be applied once the shipping
    goods from the GB to the NI will be changed.
  • Also, the rules around the import VAT will be effective once new rules are applied.
  • Thus, it’s important to prepare for the aforementioned concerns.

For further information about this eBay announcement, read eBay UK Community Announcements. Also, visit Amazon Seller Central for Amazon updates regarding UK sellers.

eBay and Amazon brexit updates

Read below the Stock Konnect guide to Brexit impact and VAT updates

See where the new rules for Brexit are posted

Official updates on the new rules for Brexit are found here. For updates regarding the needs of retailers, you might like to visit the Brexit Hub of the British Retail Consortium (BRC).

New VAT arrangements for UK imports post-Brexit agreement

On 1 January 2021, the UK government presented a new model for the VAT arrangements. This model is for the goods being shipped to Great Britain from outside of the UK. The new VAT arrangements discontinue the Low-Value Consignment Relief. This termination of the relief alleviates the import VAT on consignments of goods valued £15 or less.

Find more details here.

VAT changes for online marketplaces after Brexit deal

Now, online marketplaces are responsible for collecting and accounting for the VAT.  Read more details on these changes here.

EORI number: How to apply and trade with the EU and GB after Brexit

As 1st of January 2021 has gone and the update is in effect after Brexit deal, so you need an EORI number to move goods between Great Britain and the EU.

Apply for an EORI number as soon as possible. It normally takes up to a week to get one. If you use a post or parcel company to trade, you’ll be asked if you need an EORI number. If you do not have an EORI, it may result in increased costs and delays.

Let’s consider an example below to understand another concern.

You dispatch your parcels from the GB to the EU via Royal Mail or Parcelforce Worldwide and the items in each parcel worth less than GBP 902 i.e. EUR 1000. So for such parcels, you will not require an EORI number for filing a customs declaration.

For more information, see here.

what EORI number means

See what EORI number means for your business post-Brexit deal

This depends on the fact that in a transaction on which party is the EOR(Exporter Of Record) and IOR(Importer Of Record).

  • For sending goods across the customs border after the end of the Brexit transition, both the EOR and the IOR require an EORI number.
  • Clearing customs into/out of any EU member state, only the EU EORI number is needed.
  • For clearing customs clearances into/out of the UK, only a GB EORI number is needed.
  • One EU EORI number will be sufficient for all EU countries.

How to get a GB EORI Number

See here to know how to get a GB EORI.

How to get an EU EORI Number

Find out how to request an EORI number for EU Countries here.

Brexit Agreement impact on eBay Global Shipping Programme (GSP)

With the impact of the Brexit, the elements of the GSP scheme are identified. With fulfilment by Amazon’s EFN, eBay’s Global Shipping Programme (GSP) are now required to take care of the item shipment. It also takes the responsibility to handle both customs import documents and tax or duty. These concerns are usually unlikely to change. Find out more here