Trade In Services
The EU-UK Trade and Cooperation Agreement, now in place, means change. It will require adapting to new trading arrangements, rules and regulations. This information for cross-border SMEs will explore key areas such as VAT, e-commerce and GDPR introduce and looks at what actions service businesses may need to take.
Northern Ireland has left the EU single market in services on 1 January 2021. Northern Ireland will remain part of the UK single market in services.
The Northern Ireland Protocol (which provides for special treatment for trade in goods in Northern Ireland) does not apply to services.
There have been changes to de minimis aid for some service sector companies, for more information click here for more information click here.
Cross-border businesses on the island of Ireland or to GB, you should review and act on any changes in the rules on doing business that may apply to you.
To read more from GOV.UK on selling services to the EU, Switzerland, Norway, Iceland and Liechtenstein, click here.
Key Areas Explored
Based in Northern Ireland: The Government has updated its guidance on structuring businesses in the European Union and EEA after 1 January 2021. It contains useful links to Companies House resources. Find out if your business will need to report new information to Companies House after Brexit, and how to do this for more information from GOV.UK click here.
If your business or group includes a company formed in Ireland, new requirements ‘may’ apply, unless it has a director who is an Irish citizen. You may need to obtain a bond to the value of €25,000 or a certificate from the Irish Revenue Commissioners to certify that your company has a real and continuous link with a business in Ireland. The Irish Companies Registration Office website provides further guidance, click here for more information.
Based in Ireland: Businesses in Ireland whose group includes a UK incorporated company or branch should review the UK Government’s guidance on company registration changes from 1 January 2021, click here for more information.
Guidance on changes in companies registration procedures for Non-UK companies is available from the UK Companies House, click here for more information.
Based in Northern Ireland: EU/EEA Public Sector Contracts – Businesses that hold, rely on, or intend to tender for public sector contracts in Ireland or another EU state, should take note of the important changes that now apply, i.e. after 1 January 2021. The EU rules on the procurement of public sector and certain utilities contracts will no longer apply to the UK. The UK is joining the World Trade Organisation’s Agreement on Government Procurement, of which the European Union is already a member. This provides a level of continued access to public sector contracts in other EU states. However, the terms and conditions of access as well the enforceability of the rules, will change. Businesses that may be affected should review the position as it applies to them, and consider what steps they may need to take. The UK Government has published guidance on overseas public sector contracts after 1 January 2021. The guidance includes important links that provide detailed information on the Agreement on Government Procurement, click here for more information.
Based in Ireland: UK Public Sector Contracts – Businesses in Ireland that hold, rely on, or intend to tender for public sector contracts in Northern Ireland or Great Britain should take note of the important changes that now apply, i.e. after 1 January 2021. The EU rules on the procurement of public sector and certain utilities contracts will no longer apply to the UK. The UK is joining the World Trade Organisation’s Agreement on Government Procurement, of which the EU is already a member. This provides for some level of continued access to public sector contracts in the UK. The terms and conditions of access as well ass the enforceability of the rules will change. Businesses that may be affected should investigate the position as it applies to their business, and consider whether any steps are required. The Office of Government Procurement has published a detailed information note on the effect of Brexit on public sector contracts. It also discusses the Agreement on Government Procurement which applies between the UK and EU after 1 January 2021. It is available for download here. The OGP has established a dedicated Brexit contact point. For Brexit related queries, please email firstname.lastname@example.org.
Under the Northern Ireland Protocol, Northern Ireland will hold a dual position with regard to VAT, customs and the single market.
For services, Northern Ireland will follow UK VAT rules and not EU VAT rules. However, EU VAT law will continue to apply in relation to the movement of goods.
Therefore, Northern Ireland businesses could have to operate a dual set of VAT rules – EU VAT rules for goods and UK VAT rules for services.
- For companies based in Northern Ireland, click here for more information.
- For companies based in Ireland, click here for more information.
- Additional information is available in the European Commission Brexit Readiness Notice in the field of VAT for Services. To view this guidance, click here.
- If you wish to explore VAT in more depth we do have a dedicated section on our website which will go into more detail for businesses B2B and B2C and can be accessed here.
Under the Northern Ireland Protocol certain EU laws, including the requirements of the General Product Safety Directive, Safety of Toys Directive, Low Voltage Directive, Appliances Burning Gaseous Fuels Regulations and Personal Protective Equipment Regulations, which apply in the Republic of Ireland, will also continue to apply to economic operators and products in Northern Ireland.
This means that products placed on the market in Northern Ireland will have to continue to comply with the applicable EU legislation after 31 December 2020.
- For companies based Ireland to read more from CCPC, Competition and Consumer Protection Commission, click here for more information.
- For companies based in Northern Ireland to read more from the Consumer Council, click here for more information.