for my electronic payment transactions?
As of January 1, 2021, the United Kingdom will no longer be part of the Single Market and the Customs Union. What does this mean for my business? As a specialist in dealing with foreign currencies and international tax rates, nexnet is also well prepared for Brexit.
Uncertainty reigns after the referendum on leaving the EU in June 2016. Uncertainty about what the consequences of an unregulated Brexit will mean for the economy in general and online retail in particular. As of January 31, 2020, the UK is no longer an official member of the EU. The transition period, during which the relationship between the UK and the EU is to be renegotiated, will apply until the end of 2020. Currently, there is no agreement yet. What is certain is that from January 1, 2021, the United Kingdom will no longer be part of the Single Market and the Customs Union. But what does that mean for me?
The United Kingdom is Europe’s largest market for online retailing: 93% of all Britons store online. And after China, the UK is considered the second most popular destination for European online retailers. Then, starting in January, the UK will face EU tariffs and other restrictions and regulations. Online trade between the UK and the EU is expected to decline by approximately 70%. The reason for this is a cost increase of approx. 15%. This results from shipments in and out of the UK becoming dutiable and requiring a customs declaration for import and export.
All payment service providers have spent the last 4 years preparing for Brexit. Many have opened a branch office within the EU, thus ensuring smooth payment transactions. As a specialist in dealing with foreign currencies and international tax rates, nexnet is also well prepared for Brexit. For nexnet customers, therefore, the motto from January 2021 will be: sit back and drink tea.