After three years of relative uncertainty, Brexit is anticipated to be a material area of concern for US businesses through 2020.
For US companies trading through UK or EU subsidiaries, or where the UK and EU market is substantive, time is of the essence to assess and accomplish the following three items:
- Maintain physical and digital supply chains
- Analyze direct and indirect tax compliance requirements for completeness
- Configure ERP and other related systems configured for the changing EU landscape
Election results in the United Kingdom on December 12, 2019, gave a large working majority for Prime Minister Boris Johnson’s Conservative Party and provided a much clearer picture on the issue of Brexit.
Prime Minister Johnson’s pledge was to have phase one of the withdrawal process completed by January 31, 2020. The required legislation to do this is expected to be voted upon in the UK Parliament as soon as Friday, December 20, 2019.
The withdrawal agreement will confer EU equivalency status on the United Kingdom across many different areas of everyday life—tax, trade, security, and the courts. However, this transitional arrangement is due to expire on December 31, 2020. Without further extension, this means the United Kingdom will leave the European Union in virtual totality with or without a trade deal.
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As your business makes adjustments and tackles related complexities, contact your Moss Adams professional for the latest Brexit insight for your particular industry.