Brexit is in sight, how well prepared are you?

An overview with tips and links for exporting companies

On the night of 29 March to 30 March, the United Kingdom will leave the European Union. That date is getting closer, however, the solution still seems far away. How well prepared are you for brexit and where can you find the most important information about it?

Will it be a hard or soft brexit?

If the UK leaves the EU, it can be done in two ways: hard or soft. A hard brexit means breaking all ties with the EU without any agreements.
All agreements and laws relating to movement of people, goods and services will then lapse. Particularly troublesome if you have staff, project and business in the UK.
In a soft brexit, the UK does leave the EU, but some of the agreements relating to free movement of people, goods and services are maintained. Soft or hard, brexit simply impacts companies and individuals doing business in n with the UK.

Is the Dutch industry well prepared?

Employers' organisations VNO-NCW and FME, together with KPMG Meijburg and the Netherlands British Chamber of Commerce (NBCC), conducted a survey among two hundred entrepreneurs from the industrial sector.
Only 17% are prepared for brexit, 36% have started taking action, 38% of those surveyed are still in the orientation phase and about 10% have not yet started.
Dutch industrial companies export around €15bn to the UK every year. How well prepared are you?

Brexit and the role of the chief financial officer

Brexit will hit some organisations full force. How your organisation lands after 29 March is largely in the hands of the board.
But what role does your CFO or chief financial officer play in this? The premise is that the remit of the CFO, chief accounting officer and finance officer is expanding.

Issues you will have to deal with include:
❯ As a result of uncertainty, budgeting and forecasting becomes more difficult for the CFO.
❯ Hedging negative exchange rate effects is partly solvable. Is there a sustainable solution to this?
❯ If you depend on the UK for part of your sales, then chances are that in the short term sales will fall.
❯ The search for alternative markets should be initiated to thus compensate for sales decline.
❯ HR and finance should sit down to discuss impact on possible staffing and costs.

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What impact will brexit have on VAT?

In case of a hard brexit, the UK will be considered a third country for VAT purposes from the moment of brexit. However, traders buying goods from the UK can apply for an authorisation for reverse charge VAT on importation.

It concerns the application of an article 23 permit (Turnover Tax Act 1968). This licence ensures that entrepreneurs, who have to declare and pay VAT to customs every time they import goods after brexit, can reverse the VAT. That is, the VAT payable on imports will be included in the next VAT return.

Export companies and brexit

The Dutch family-owned company, Dutch Flower Group (DFG), which specialises in the international trade of flowers and plants, informs industry trade magazine HortiPoint that the company is getting ready for both a hard and soft brexit.
Indeed, the UK is an important export country for DFG and an alternative market is not likely to present itself. DFG will also make every effort to continue importing into the UK, says CFO Harry Brockhoff.
The UK market accounts for sales of €350 million but is under pressure due to brexit, the CFO tells trade magazine. Sales fell by almost 3% in the first six months of this year. This is partly also due to currency effects.
The pound has lost almost a fifth of its value against the euro since the UK referendum. Companies like DFG can partially hedge negative currency effects, but that is not a sustainable solution.
It is inevitable to renegotiate with UK customers. Flowers and plants will become more expensive for UK businesses and consumers. The CFO estimates that sales will initially slump slightly, but is confident that the market will stabilise again within three to five years.

Brexit and education

When we think of brexit, we quickly think of export companies and organisations trading with the UK.
Research by SimpledCard shows that schools, unlike other sectors, have incurred a lot of business expenditure in the UK. Education, especially secondary and further education, makes these expenditures especially in major UK cities.
These are mainly costs incurred due to field trips and internship visits. The Algemeen Dagblad wrote earlier this year that the number of school trip bookings with excursion provider Travel Inventive, among others, will not decrease regardless of brexit. Director Ellen Weijand tells the newspaper that there are many enquiries from schools, but that despite the uncertainty, offers continue to pour in for trips to London.

These are not just educational trips. British companies are also visited as part of internships and training. ROC Mondriaan in The Hague, for example, will go to the UK in March, albeit just before the official brexit.
Bottleneck for schools, however, is the fact that after a no deal, or hard brexit, students and pupils will have to spend money on a passport.

Overview brexit sources

Survey respondents found that business owners are most worried about delays, red tape, higher costs and complex customs procedures. For anyone lost in brexit-land, we have listed the most consulted sites with information.
How does the central government help?
The central government and its implementing organisations have launched the Brexitloket.nl initiative. Go through the Brexit Impact Scan and get an insight into what effect brexit will have on your organisation.

Alternative markets after brexit
If brexit has such an impact on your business and then you may need to move to alternative markets. With the Brexit voucher, you get a grant for advice on alternative markets and the impact of Brexit on your business.

Brexit and Dutch ports
If you use the Dutch ports then this site information on the necessary permits and forms. The website was created by Dutch Customs, the Port Authorities of Amsterdam and Rotterdam, ferry operators and the Association of Rotterdam Shipbrokers and the information provided is in accordance with European legislation.

What does Brexit mean for your employees?
The website of the Algemene Werkgeversvereniging Nederland provides answers to many HR questions related to brexit. Think tax issues, but also pension questions, social insurance and staff migration.
A wealth of information has been made available from the EU. The site hulpbijbrexit.nl has compiled a list of links by industry.

SimpledCard frees organisations from red tape and bureaucratic processes by making business expenses and their processing faster, easier and more secure.