Great Britain now third country
The United Kingdom withdrew from the European Union (EU) on 1 February 2020 and left the EU Customs Union on 1 January 2021. Therefor EU traders, businesses and citizens will experience significant changes due to Brexit.
The UK’s departure from the EU also means that it will be considered a “third country”, ie a non-EU country, from 1 January 2021. An exception to this is Northern Ireland,. In that case, EU customs, VAT and statistical legislation continue to apply. As a result, in the case of Great Britain (England, Scotland, Wales), the rules of exit and entry have changed, and products coming from or going to Great Britain have also become subject to customs duties.
For customs administration, an EORI number must be requested from the National Tax and Customs Administration (NAV). This can be done in person or through an agent. Products arriving in Hungary from outside the EU – in this case from Great Britain – and departing from Hungary to Great Britain must be reported in a customs declaration, as this is a condition for import and export from January 2021. NAV carries out the customs procedure on the basis of the submitted goods declaration.
For individuals, it is good to know that if they order goods from Britain or import goods from there on their journey, from January 2021 it will be considered as an import from outside the EU. It is therefore advisable to find out from the customer information available on the NAV website before ordering or travelling. If someone does not want to handle their own customs affairs, they can entrust a customs representative instead.
What can I do to mitigate the impact of Brexit?
Establishing a Hungarian company is an exceptional tool to mitigate the disadvantages of Brexit.
A company established in Hungary will allow UK small firms to maintain their business in the EU region and continue to benefit from accessing the single market. The immediate benefit of forming a company in Hungary is that it will allow trading within the EU without customs and tariffs, invoice business customers without charging VAT and administer their trade and service activity by the EU legislation.