Brexit raises high hurdles: British authorities advise companies to move to the EU

Saturday, January 23, 2021

Brexit creates high hurdles
British authorities advise companies to move to the EU

Since January 1st, British companies have found it much more difficult to trade with the European Union. The British "Department of International Trade" is proposing a surprisingly selfless solution to the battered entrepreneurs.

UK companies trading with the mainland appear to be encouraged by government trade advisors to set up separate companies within the EU. This avoids the fees, bureaucratic effort and taxes associated with Brexit. The British "Observer" and the newspaper "Guardian" report.

According to the reports, British small businesses are being advised by consultants from the Department of International Trade (DIT): In order to avoid border issues and VAT problems, it is best to register new companies in the EU internal market. From there, goods could be distributed much more freely.

Two heads of British companies told the Observer that they had decided, on the advice of experts from the agency, to register new companies in the EU in the next few weeks. Further Companies have also reported being advised by government officials to register operations in the EU but have not yet made a decision. The Guardian asked the authorities for a statement, but got no answer.

One of the entrepreneurs cited in the report is Andrew Moss, who runs a packaging company based in Ely, Cambridgeshire. According to the Guardian, he wants to register a European company in the Netherlands in the next few weeks. That means he will lay off some employees in the UK and hire some in the Netherlands. Referring to the conversations with the advisor to the Ministry of International Trade, Moss said: "I asked him if I had another choice. He replied that he saw no other way. He said he had to be careful what he said, but he was very clear. "

By relocating businesses to the EU, companies can not only avoid cross-border delays, they are also making savings in logistics by being able to bundle individual shipments across the EU border. In addition, the companies are thereby easing the VAT, which is painful for them and their European customers.