Because of this, your European store will soon be taxed twice!

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Since the beginning of 2019, the increasingly approaching Brexit deadline has almost driven people in England crazy. In January, Prime Minister Theresa May's Brexit proposal even suffered the biggest defeat of the ruling party in British history, with the number of votes in favor less than half of the number of votes against. The cabinet headed by May was almost impeached because of this (click here to view).

After this incident, although May was not impeached, she still needed to run back and forth with the EU to renegotiate a Brexit agreement.

Just two days ago, on the 12th, May, who had been busy for more than a month, submitted to Parliament a deal reached after many compromises with the EU. However, the result of this parliamentary vote...

Although the ratio of votes in favor and against was slightly better than last time, it was still a drop in the bucket. The new agreement reached by May in negotiations with the EU was once again rejected by the British Parliament .

Unlike the last time, this vote is the last crucial parliamentary vote before the Brexit deadline, and May does not have the opportunity or time to negotiate with the EU again.

Obviously, the result of this vote has directly raised the possibility of the UK's no-deal Brexit to a new level, even though the proposal for a no-deal Brexit was rejected by 321 votes to 278 in the parliamentary debate yesterday (13th).

However, if the UK or the EU does not agree to delay the Brexit deadline before the 29th, the UK will still be forced to leave the EU without a deal!

What I didn’t expect was that there were still 278 people who supported Britain’s no-deal Brexit, which is actually more than the number of people who supported May’s Brexit agreement.

According to a report released by the British government in February, if the UK leaves the EU without a deal, the overall size of the UK economy may shrink by 6.3%-9%, and the negative impact will be even more serious than the financial crisis.

For Amazon sellers, a no-deal Brexit will not only temporarily block the UK border and prevent all goods from entering and leaving the UK, but as EU member states, there are exemptions in the trade policy for transporting products to each other. Such preferential policies have prompted many Amazon sellers to use UK warehouses to store goods (because of lower tax costs) and then sell products to other EU countries.

However, if the UK leaves the EU without a deal, the trade exemption policy will definitely be gone. This will likely cause these sellers to be taxed by the UK when their goods enter and leave the UK, and taxed again when they are sold to other EU countries, causing the tax costs to double.

There are also issues such as the pound exchange rate, trademark and intellectual property policies , etc. A no-deal Brexit is a very wide-ranging and serious issue . Amazon Europe or sellers who want to enter the European site should pay more attention to this incident in the near future.

Since the consequences are so serious, what exactly does the British Parliament want to do when it neither agrees to any Brexit agreement nor to a no-deal Brexit, thus putting the entire Brexit process into a vicious circle ?

In addition to the reason of party struggles within Parliament, the more important reason is that both the UK and the EU want to reach a result that is most beneficial to themselves on the Brexit agreement, so they refused to give in to each other and held a last-minute negotiation.

First of all, the EU must be resentful of Britain's betrayal, so it is impossible for it to try its best to meet Britain's demands. At the same time, making Britain's Brexit process more and more difficult can also serve as a warning to other current EU member states to defend European integration.

The biggest objection to Brexit from the UK is the border issue in Northern Ireland .

Let me give you a brief introduction here. Northern Ireland is the territory of the United Kingdom (the United Kingdom of Great Britain and Northern Ireland), but Ireland is an independent country. We will not go into the ethnic and historical issues involved.

The main contradiction is that Ireland, as an independent country, is still a member of the European Union . In the latest Brexit agreement reached between May and the EU, there is such a policy:

This back-up agreement stipulates that no customs or inspection facilities shall be set up between Ireland, an EU member state, and Northern Ireland, a British territory, and that trade activities shall still be conducted in accordance with the original EU rules.

This is equivalent to keeping Northern Ireland in the EU economically, which will further tie down the whole of the United Kingdom and keep it trapped in the EU's trade system. This is the biggest reason why the British Parliament is unwilling to agree to the Brexit agreement .

Both sides are holding on to their bottom line and refusing to give in, hoping to force the other side to make concessions. The Brexit incident has now reached a fever pitch . In the absence of the possibility of renegotiating the Brexit agreement, the only option left to avoid a no-deal Brexit is a delay.

The extension requires the consent of both the EU and the UK. Although the UK has expressed its willingness to extend Brexit rather than have no agreement, the EU has previously stated that it will not agree to extend Brexit unless it can see a practical alternative.

Now, a no-deal Brexit, which no one wants to see, has become the most likely outcome. If neither the UK nor the EU takes further action, Amazon sellers will have to prepare for a no-deal Brexit on the 29th.

Sellers who sell in the UK or other European sites, if you don’t know how to deal with the UK’s no-deal Brexit, you can scan the QR code below to consult me~

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group

Source: Cross-border Business School

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