28 February, 2019

Hard Brexit may occur within a month

For just another month, the United Kingdom (UK) has a chance to ratify the agreement with the EU. If the agreement does not occur, UK will become a third country for the European Union, and it will no longer be subject to EU law. Companies that have either imported or exported from the UK will again be burdened with customs duties and different tax payments. Also the rules for registration and payment of VAT will be changed; declarations which are required for movement of goods across the UK will have to be submitted for customs clearance; prohibitions and restrictions of goods entering from the UK in the EU may be introduced; authorisations by authorized economic operators in the UK will no longer be valid in the EU, etc. In case of hard Brexit, it also means that the UK will no longer be in the SEPA area, which means payment under the same basic conditions as in the EU; an open transaction account in the UK will be counted as an account opened abroad and not as in the EU; the European Company will cease to exist, as well as the European Payment Order.

Due to all of the above, there may be several disruptions in the operation with the UK, which would prevent companies from doing business as they have been accustomed so far, and therefore for normal business continuation and reduction of damage all such companies should also prepare until 29 March for possibility of hard Brexit.

RELATED POSTS
Repayment of overpaid advance payment of personal income tax

Repayment of overpaid advance payment of personal income tax

On 4 May 2019, the amendments to the Personal Income Tax Act (ZDoh-2U) and the Pension and Disability Insurance Act…

READ MORE
Offsetting of tax claims prior the return of personal income tax

Offsetting of tax claims prior the return of personal income tax

Today, the Financial Administration of the Republic of Slovenia (FURS) announced it shall, on 9. 5. 2019, offset claims against…

READ MORE
What to do if you invested in foreign property?

What to do if you invested in foreign property?

In Slovenian case law, one of the most common disputes in the field of unjust enrichment occurs regarding the return…

READ MORE

Let's connect

Let us know how we can help you and your business.

Dalmatinova ulica 2
SI-1000 Ljubljana, Slovenia

+386 59 097 400
+386 59 097 410

E-mail: info@s-k.law