31st January 2020 is the deadline for United Kingdom exiting the European Union. However, there have been new developments regarding the transition period. We will explain how these developments will affect business in Europe, namely in Slovenia and what British citizens can expect in regards to running their business.
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What is Brexit?
Brexit is an abbreviation for Britain exiting the European Union. The exit will officially take place on 31st January 2020. The new developments concern mostly the transition period that will be in place until 31st December 2020. In this time, business conduct between the European Union and United Kingdom will be unchanged.
What are the new developments on the transition period after Brexit?
Until 31st December 2020, the legal order of the EU will still apply. It also means that until then the same trade and customs rules will apply. Additionally, during the period there will be ongoing negotiations between the UK and EU.
There is still a possibility of an unclear exit after 31st December 2020. If the EU an UK do not make a definitive deal during that the transition period about trade and future relations, it will lead to a »no-deal« Brexit. In this case, the UK would become a third country in comparison to EU – which will affect the fields of customs, indirect taxes, VAT and prohibitions or limitations.
The new developments on the transition period will enable easier movement of goods between UK and Europe. After the end of the transition period, insurance of goods which is also valid in UK will be required.
Are there possibilities of additional prolongations after 31st December 2020?
Until 30th June 2020, the UK has a possibility to request for an additional prolongation of the transition period. It can be for maximumly 2 years, so until the end of 2022, which the UK could use in case the new developments in the negotiations would not come to a mutually fruitful agreement.
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