Spain sends no-deal Brexit warning to 90,000 businesses

Spain’s national tax agency has sent out more than 90,000 letters to Spanish businesses with commercial links to the UK, warning them of how their practices will have to change in the event of a no-deal Brexit.

Spain sends no-deal Brexit warning to 90,000 businesses

Spain’s version of the UK's Inland Revenue on Friday began reaching out to Spanish companies exporting everything from meat to medicine to the United Kingdom, laying out the contingency plan if Britain were to crash out of the EU without a deal on October 31. 

“From the customs point of view, the new formalities include the presentation of a customs declaration for each shipment, the carrying out of customs controls, the payment of customs duties and other charges, or the need to obtain sanitary, phytosanitary, or other certifications,” reads Hacienda’s letter.

Spain’s Agencia Tributaria, as Hacienda is also known, has along with other measures reinstated the need for the Spanish companies in question to have a EORI number (European Union registration and ID for the import/export of goods into or out of the EU) as a means of keeping their export business working.

A plan is already in place to increase the amount of personnel at airports and ports across Spain to deal with potential holdups at custom points.

Even though the chances of the UK crashing out on October 31st have been somewhat diminished by the UK Parliament’s recent vote to block a no-deal, Spanish tax authorities have stuck by the EU’s stance that Britain will be given no “preferential treatment” without an agreement, at least in terms of the customs union.

READ ALSO: Spain guarantees residency for 400,000 Brits even with Hard Brexit

“With regard to VAT, your shipments to the United Kingdom will be exempt as exports and the export customs declaration will be one of the means of proof admitted for the purpose of justifying said exemption,” reads the letter. 

“On the other hand, your imports from the United Kingdom will be subject to VAT payment.

Gibraltar is perhaps the most contentious issue for Spain in the event of a no-deal Brexit, with mounting concern over the management of its border separating it from “The Rock”.

Contingency plans drawn up in March included the option of easing the transportation of goods between Spain and Gibraltar in trucks owned by Gibraltar-based companies, conditions which are still dependent on a “reciprocal agreement” for Spanish businesses going into the British Overseas Territory.

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Brexit: Brits in EU feel European and don’t want to return home

The majority of Britons who live in the EU, Norway, Iceland or Switzerland and are protected under the Brexit agreement feel European and intend to remain in Europe permanently, but many have concerns about travel problems, a new survey reveals.

Brexit: Brits in EU feel European and don't want to return home

The research also shows that problems exist and “travel is where most issues relating to the new status currently occur”. For instance, border officials are still stamping passports of UK citizens with residence rights under the EU UK withdrawal agreement, even though they shouldn’t.

“There is constant confusion around passport stamping. I was ‘stamped in’ to France on a short trip… but could not find anyway to be ‘stamped out’ again. I think I can only spend 90 days in other EU countries, but have no idea how anyone can check or enforce that – until someone decides to try. It’s a mess,” was one of the answers left in an open question.

“Every time I go through a Schengen border control, I need to provide both my passport and Aufenthaltstitel card [resident permit in Germany] and watch to check that they don’t stamp my passport. As I am currently travelling a lot that’s been 20-odd times this year…” another respondent said.

The survey was carried out by Professor Tanja Bueltmann, historian of migration and diaspora at the University of Strathclyde in Glasgow, between October and November 2022. About 1,139 UK citizens replied.

Of these, 80 per cent found acquiring their new status easy or very easy, 60.7 per cent feel their rights are secure, while 39.3 per cent have concerns about their status going forward.

Staying permanently

More than three quarters (76.6 per cent) of respondents said they plan to live permanently in the EU or the other countries of the European Economic Area and Switzerland. In fact, 65.7 per cent said that Brexit has increased the likelihood of this choice.

For some, the decision is linked to the difficulty to bring non-British family members to the UK under new, stricter immigration rules.

“My German wife and I decided we no longer wanted to live in UK post Brexit referendum. In particular, we were affected by the impact of immigration law […] We cannot now return to UK on retirement as I cannot sponsor her on my pension. We knew it was a one-way journey. Fortunately, I could revive an application for German citizenship,” was a testimony.

“My husband is a US citizen and getting him a visa for the UK was near impossible due to my low income as a freelance journalist. We realized under EU law, moving to an EU country was easier. We settled on Austria as we had both lived there before… we could speak some German, and we like the mountains,” said another respondent.

Professor Bueltmann noted that the loss of free movement rights in the EU could be a factor too in the decision of many to stay where they are.

Citizenship and representation

Among those who decided to stay, 38.2 per cent are either applying or planning to apply for a citizenship and 28.6 per cent are thinking about it.

A key finding of the research, Bueltmann said, is that the vast majority of British citizens do not feel politically represented. Some 60 per cent of respondents said they feel unrepresented and another 30 per cent not well represented.

Another issue is that less than half (47.5 per cent) trust the government of their country of residence, while a larger proportion (62 per cent) trust the European Union. Almost all (95.6 per cent) said they do not trust the UK government.

Feeling European

The survey highlights the Brexit impacts on people’s identity too. 82.6 per cent of respondents said they see themselves as European, a higher proportion than those identifying as British (68.9 per cent).

“Brexit has really left me unsure of what my identity is. I don’t feel British, and I certainly don’t identify with the mindset of a lot of British people who live there. Yet, I am not Danish either. So, I don’t really know anymore!” said one of the participants in the survey.

Professor Bueltmann said the survey “demonstrates that Brexit impacts continue to evolve: this didn’t just stop because the transition period was over or a deadline for an application had been reached. Consequently, Brexit continues to shape the lives and experiences of British citizens in the EU/EEA and Switzerland in substantial, sometimes life-altering, ways.”

Considering the results of the study, Professor Bueltmann recommends policy makers in the EU and the UK to address the issue of lack of representation, for instance creating a joint UK-EU citizens’ stakeholder forum.

The report also recommends the UK government to rebuild trust with British citizens in the EU introducing voting rights for life and changing immigration rules to allow British-European families to return more easily. 

This article was prepared in cooperation with Europe Street News.