What is No Deal Brexit? No Deal Brexit Review

A no-deal Brexit means that the Brexit agreement reached between the UK and the EU fails to take effect before March 29, 2019. EU rules will not be applicable in the UK at that time, and the UK will directly "leave the EU" without going through a transition period.

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"No-deal Brexit" means there will be no transition period after Brexit, EU laws will immediately cease to apply to the UK, the trade relationship between the UK and the EU will return to the framework of the World Trade Organization, and both sides will face the problem of increased tariffs and trade barriers. If the UK leaves the EU without a deal, the economic and trade relationship between the two major economies will not be clear, and both sides will be greatly affected.

The impact of a no-deal Brexit on the UK economy

1. First, it will make it difficult for the UK and the EU to carry out normal economic activities. For the UK, the UK and EU member states are the largest, highest level and most closely connected free trade zone. If there is no agreement on Brexit, the UK will no longer enjoy the current customs union treatment with the EU and can only trade according to the ordinary most-favored-nation standards. All walks of life in the UK, from ordinary daily necessities to precision instrument manufacturing, will be affected to varying degrees.

2. The UK's normal participation in global economic activities will be severely impacted. After the UK joined the European Community in 1973, all of its foreign trade agreements were signed with Europe as a whole. If the UK formally breaks up with the EU, then the free trade agreements and investment agreements signed between other countries and the EU will not apply to the UK, and it will definitely need to go through a difficult transition and adjustment period.

3. Regional separatism in the UK will rise rapidly. Northern Ireland and Scotland in the UK have always been unstable, and voices advocating independence have never stopped. After the UK leaves the EU unconditionally, it will have a huge impact on these two regions.

Impact on cross-border foreign trade

1. Notice from the European Union Trademark Office

Starting from March 30, 2019, the UK will leave the EU, and Amazon UK will no longer accept EU trademark registrations.

2. VAT usage

(1) Whether it is VAT or tariffs, the UK is equivalent to non-EU countries. That is to say, when goods enter the EU market from the UK, British companies need to declare imports and pay the VAT of the importing country, and goods from EU countries entering the UK also need to go through customs declaration and customs clearance procedures.

(2) There is no remote sales policy for cross-border sellers in the UK. Without the remote sales policy, cross-border sellers will also need to pay taxes locally on goods sold from the UK to EU countries. Therefore, in addition to the UK EORI number and UK VAT number, cross-border sellers must also register the EU EORI number and the country's VAT number for goods exported from the UK to EU countries.