Does Brexit have consequences: for my electronic payment transactions?
From 1 January 2021, Great Britain will no longer be part of the internal market and the customs union. But what does that mean for me? As a specialist in dealing with foreign currencies and international tax rates, nexnet is also well prepared for Brexit.
Following the referendum on withdrawal from the EU in June 2016, uncertainty has prevailed: uncertainty about the consequences that a no-deal Brexit will have for the economy in general and online retail in particular. Since 31 January 2020, Britain has no longer been an official member of the EU. Until the 2020 there will be a transition phase, during which the relations between the United Kingdom and the EU are supposed to be renegotiated. At the time of writing, no agreement has yet been reached. What is certain is that from 1 January 2021, Great Britain will no longer be part of the internal market and the customs union. But what does that mean for me?
The United Kingdom is Europe’s largest market for online retail: 93% of all Britons shop online. And after China, Great Britain is the second most popular target for European online retailers. From January, Great Britain will be confronted with EU customs duties and other restrictions and regulations. It is expected that online trade between Great Britain and the EU will decline by around 70%. The reason for this is a rise in costs of around 15%. This is due to the fact that shipments in and from the United Kingdom will be subject to customs duties and a customs declaration will be required for imports and exports.
All payment service providers have been able to prepare for Brexit in the last four years. Many have opened a branch within the EU in order to secure smooth payment transactions in this way. As a specialist in dealing with foreign currencies and international tax rates, nexnet is also fully prepared for Brexit. Thus, for nexnet’s customers the same message will also apply from January 2021: sit back and enjoy a cup of tea.