10 Questions and Answers on Trade and Brexit

1. My company sells goods online to consumers in the UK. Do we need to register for VAT in the UK?
   It depends. If the value of the shipment is less than £135, you must register for VAT as a seller. If the value is higher, you do not need to register for VAT, provided your customer acts as an importer.
2. I sell games, movies and other electronic services to consumers in the UK. Can I report my sales on a MOSS return?
   No, not after 1 January 2021. At this point, you must be VAT registered and pay UK VAT. The tax liability applies directly from the first pound.
3. We receive some UK VAT, for example, on our travel expenses in Great Britain. Will we still be able to claim it digitally via the Swedish Tax Agency?
   No, it no longer works. Refunds must be claimed directly from the UK Revenue Agency.
4. Our company only trades services to and from the UK, so we won't be affected by Brexit, right?
   The impact is greatest in trade in goods, but trade in services can also be affected. Some common examples are the sale of online services to UK consumers and travel companies selling travel or transport services to/from the UK. In addition, some management and accounting procedures have changed. It is important to check how your sales/purchases of services will be affected by Brexit!
5. Do Swedish companies have to have a UTR number in the UK in order to apply for an EORI number?
   No, Swedish companies do not need to apply for a UTR (Unique Taxpayer Reference) number.
6. We export/import goods from Sweden to/from the UK, is this trade duty free now that the UK has a free trade agreement with the EU?
   The duty-free status under the EU-UK Free Trade Agreement only applies to goods originating in the EU. For goods originating from a different country, other agreements and rules apply. When importing from the UK to Sweden, duty-free status only applies to goods originating in the UK.
7. Does the FTA mean I will automatically get duty free imports of UK goods?
   Exemption from customs duties is obtained through a declaration of origin issued by the supplier or through the application of the importer's flag.
8. Can we use the same delivery terms when trading goods with the UK as we did before Brexit?
   Our advice is to review the delivery terms used when trading goods with the UK. These can now be of great importance for VAT administration. For example, DDP delivery terms may mean that as a Swedish seller you have to register for VAT in Great Britain.
9. Do we as a Swedish company have to pay customs duties on goods that were rented to a customer in Great Britain before Brexit and returned after Brexit?
   Provided that the goods are returned within three years and in their unchanged condition, an exemption from return fees can be claimed in the customs declaration.
10. Before Brexit, we sent an item for repair to the UK. What should we think about when the item returns to Sweden?
    When re-importing, the value of the export goods and any repair costs must be declared as a duty-free value on the customs declaration.

Visit the UK page for Customs duties on import into the country here.

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