Recap – Brexit: Trade and Cooperation Agreement between the European Union and the UK – This is what you need to know!!!

Most important points from an Indirect Tax point of view:

There is an agreement between the European Union and the UK which is applicable as of Jan 1, 2021
The free movement of goods will end: Customs checks and controls will apply to all UK exports entering the EU. UK agri-food consignments will have to have health certificates and undergo sanitary and phytosanitary controls at Member States’ border inspection posts. This will cost UK businesses time and money.
The free movement of services will end: UK service providers will no longer benefit from the country-of-origin principle. They will have to comply with the – varying – rules of each Member State, or relocate to the EU if they want to continue operating as they do today. There will be no more mutual recognition of professional qualifications. UK financial services firms will lose their financial services passports.
The EU-UK Agreement provides for zero tariffs and zero quotas on all goods.
To benefit from these exceptional trade preferences, businesses must prove that their products fulfil all necessary ‘rules of origin’ requirements.
Customs procedures will be simplified under the Agreement, as both Parties have agreed, e.g. to recognise each other’s programmes for trusted traders (“Authorised Economic Operators”).

See following key documents:

Trade and Cooperation Agreement between the EU and and the UK : This is still a DRAFT agreement that needs to be approved by the EU Member States, the European Parliament and the parliaments in the United Kingdom
Summary of the agreement issued by the UK government
Summary of the agreement issued by the European Union (read Q&A on the EU-UK Trade and Cooperation Agreement)

Brexit