Over 80% Of Businesses Forsee Difficulties In European Trading When The UK Leaves The EU

Published On : 05/16/2018

Eloise Miller, Director

A recent survey by European VAT specialist, Accordance, found that many businesses (over 80% of respondents in a recent survey) foresee difficulties in European trading once the UK is outside the existing customs and VAT systems. Alarmingly despite this concern over 60% of respondents admitted that whilst they had considered how Brexit would impact their businesses’ VAT position, they had no strategic plan in place.

Asked what was the area of their business that they were most concerned about the consequences of Brexit, the respondents replied:

• 25% supply chains
• 23% import VAT
• 21% fiscal representation
• 15% Triangulation
• 8% VAT recovery.

In March 2019 the UK will cease to be a member of the European Union with Tory MP Anna Soubry tabling a cross-party amendment to the Trade Bill in an attempt to force the Government to retain a customs union with the EU, which could force this amendment through Parliament. Interestingly of the businesses surveyed by Accordance38% did not think the UK would form a customs union with the EU. Both outcomes will create considerable complications for businesses dealing with cross border VAT, where billions of VAT goes unrecovered.

Nicholas Hallam, CEO of Accordance comments, “It is clear from these survey results that UK businesses are aware but not prepared for the changes ahead. Working with companies such as Accordance can help businesses to consider their VAT position and develop a strategic plan for the complex issues around Brexit and the difficulties of trading with Europe once we are outside the current VAT systems.”

Wanda Rich

Wanda Rich has been the Editor-in-Chief of Global Banking & Finance Review since 2011, playing a pivotal role in shaping the publication’s content and direction. Under her leadership, the magazine has expanded its global reach and established itself as a trusted source of information and analysis across various financial sectors. She is known for conducting exclusive interviews with industry leaders and oversees the Global Banking & Finance Awards, which recognize innovation and leadership in finance. In addition to Global Banking & Finance Review, Wanda also serves as editor for numerous other platforms, including Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.