For many organisations the new post-Brexit trade deal has made the task of shipping technology from the UK to mainland Europe more challenging. As a result, it is putting IT project deadlines in jeopardy and employees are at risk of being without the technology they need.
A Before and After Snapshot
Before Brexit getting technology shipped into the EU from the UK was fast, inexpensive and simple. Especially with the help of a Global IT expert, such as CANCOM. Meeting tight project deadlines, even in far flung corners of the globe, was completely achievable. For many international businesses a fast-flowing IT supply-chain, often outsourced to a 3rd party, has become an essential part of their pan-European and global tech operations.
After Brexit many businesses are finding the finer details of the new trade deal — in place since January — are creating significant issues in their IT supply chain. In short, they are unable to ship the goods as cheaply and easily around the world as they used to. Despite the lack of tariffs, many businesses are now facing significant delays, greater expense as well as a frustrating lack of clarity around import VAT and the customs clearance processes - putting projects and international deployments at risk.
The Post-Brexit Trade Deal in practice is:
- More Expensive; while there are no tariff duties, there's still import VAT to pay at each EU location. Here’s an example of the impact this can have. If a UK-based company was shipping IT equipment from the UK to sites in the Netherlands pre-Brexit, using a service like CANCOM’s would have cost approximately £500. Now, however, with the new import VAT requirements, this would cost several thousand pounds, depending on the value of goods. And, if using a door to door service, none of this VAT would be reclaimable by the buyer. There are ways to reclaim the VAT, but this will delay shipments.
- Causing Greater Delays: In order to reclaim VAT DAP “Delivery at Place” would need to be used. But this is far from straightforward and is resulting in significant delays, forcing businesses to jump through more hoops. With DAP shipping, the end user is required to be registered for import, hold the correct VAT ID within the destination country, be responsible for clearing the goods through customs and has to pay VAT upfront.
How Can We Help?
Because CANCOM has operations across the EU we can neatly side step these issues to provide the same seamless service we always have - guaranteeing fast deliveries of IT projects, across Europe and around the world.
To complement this CANCOM have a global professional service practice where we’re able to design, stage, integrate and support global IT projects, providing both technical and project management resources.
In light of this severe disruption the UK the Government may be forced to change the current agreement, but this is unlikely to happen quickly. If you are experiencing issues right now delivering IT projects in Europe, please get it touch.
Dan Watson Jones