Written 14th January 2021
Brexit Horror stories and the future of removals to and from Spain and the EU. Read this article to find out how household removals between the UK and anywhere in the European Union will work in the future. It explains the new rules, and also how Brexit horrors are happening at the moment. If you’re looking for a removal to or from Spain, Indalo Transport and Indalo Storage in Spain will take care of everything for you. This prevents you from having to deal with any of the problems mentioned in this article.
It has finally happened. The UK left the European Union on December 31st, and began 2021 as an independent sovereign state. This has finally given the UK control over its own borders, after 47 years as a member of what began as the EC. Following years of negotiation on an exit deal, it seemed like we would never reach agreement. However, a deal was struck on 24th December, with seven days to go until we would have crashed out of the EU. This free trade agreement will allow goods and services to move freely. It will also keep tariffs and import duties at zero for most things. However, as a country now outside the largest trading bloc in the world, there will be extra charges to pay when trading in the future.
Just a few weeks into the new rules and we have already heard some horror stories, and a few things that are just plain bizarre.
We have been told of vehicles prevented from crossing into Europe because they don’t have the necessary paperwork in place. Also, vehicles impounded for days waiting for the correct clearance. We have heard how some major courier firms have suspended deliveries into the EU. The BBC even reported the incredible story of Dutch customs confiscating truckers’ packed lunches of ham and cheese sandwiches. All because the trade deal prevents the export of dairy products from the UK!
It has been interesting to discover where removals sit in this brave new world of customs clearance, T1, T2 and SSD forms and more for transporters. What does the future hold for removals to and from the EU now?
As a removal is technically classed as second hand personal goods, you may think there wouldn’t be a problem moving your own furniture and possessions to your new home in the EU. Read on to find out why that is definitely not the case.
Carry on reading Brexit horror stories & the future of removals to and from Spain for a full explanation of the customs process. I detail both imports and exports, and I have tried to explain so it is easy to understand.
The technical bit!!
When moving to a new country anywhere in the world, you are moving your residence, and therefore your furniture and possessions are changing residency with you. But you are effectively exporting and importing goods, because the UK is now independent and what is called a ‘third country’. To take goods out of a country, you need to export them. To bring them into another country, you must import them. This is the essence of customs clearance. The process entails the value of your goods being assessed, and then you pay duty and VAT upon entry to the new country. Or you get tax and duty reliefs, to allow your goods to travel tariff and vat free. Simple!
So we have gone from completely free movement to full export and import controls, overnight. In short, with anything concerning the EU, there is now a whole new layer of complex bureaucracy to comply with. The start of the new year has seen businesses adapting to a new regime of administration, border checks, customs inspections and regulation. A seemingly endless amount of paperwork.
Indalo Transport have been actively preparing for this since the beginning of 2020 and I’m happy to say that we have everything in place to ensure our customers enjoy a hassle-free removal.
So what has changed?
The easy way to look at things is to realise that the EU border no longer starts at British shores. As the UK is no longer part of the EU, we now enter Europe from the outside. This means we must do certain things before being allowed in.
No longer can anybody just load a van with furniture and head off across the channel. Now, you must get customs clearance for the load, even if it is all your own stuff. From now all removals to and from the EU will require in-depth inventories and packing lists. Each client will have to provide proof of identity, residency and destination, and also provide monetary values. Each removal firm is now registered with HMRC as an economic operator with an EORI number. They also need to register with the relevant European authorities, or use outside agencies to act on their behalf for the client.
The consequences of things not being done correctly are enormous. Without customs clearance the removal will not even leave the country of export. Trying to enter the EU with undeclared, or wrongly declared goods, will result in delays, fines, and goods being stranded. If the transporter doesn’t have the correct licensing, insurance, and documentation, customs will impound the vehicle.
The UK Department for Transport informed all hauliers by email on 13th January that “French Customs have a zero-tolerance policy to HGV drivers without the correct import and export documentation for the goods they are carrying”
What if I moved my own goods?
The short answer is that the same rules apply. If someone loaded their own van with their own furniture, they are subject to the same rules. You cannot transport any goods into the into or out of the EU without customs clearance. UK registered commercial vehicles are quickly becoming the biggest target for customs authorities. Fines for incorrect documentation and failure to adhere to weight restrictions will be very easy to enforce. UK vehicles are easy to spot and, even if they do get past the ports, will be easy prey for the Guardia Civil.
Will I be taxed on the value of my furniture?
Possibly. If you are moving as a permanent resident (Transfer of Residency process) then you may not have to pay vat on the value of your goods in the country you are moving to. However, this is dependent on customs clearance being obtained and the relevant tax reliefs being applied for. If you are shipping used furniture to a holiday home where you don’t have residency, then vat will be payable on the declared value of those goods, plus transport cost.
Indalo Transport will apply for customs clearance for all our clients and ensure that we obtain the correct reliefs, as part of our normal procedures.
What about sending new stuff to Spain?
We have had a service delivering new items from the UK to Spain since we started in 2013. The ability to save money by buying online in the UK has been very attractive to many clients. Even with the cost of transport to Spain added on. I am sorry to say that this has now significantly changed. Brexit Horror stories and the future of removals to and from Spain and the EU means that this will be a victim of new customs rules.
To put it in perspective, quite simply every individual client delivery, from a small parcel right up to a big American Style Fridge Freezer or a garden furniture set, will now need customs clearance. And everything being imported into Spain will be subject to Spanish vat at 21%, based on the invoice value, plus the cost of transport. The result of this is that deliveries of anything new from outside the EU will become much more expensive.
A possible loophole around customs rules?
If you are already a resident of Spain then you may be able to buy things in the UK without vat being added. This is because supplies to outside of the UK are not subject to UK vat. However this will very much depend on the supplier. If successful, then you will only pay vat when the items get to Spain. Don’t forget though, that there will still be the cost of the customs clearance process.
Indalo Transport will continue to offer our ‘UK shopping from Spain’ service for the next few months to test whether it is viable to continue with. But I feel it is very much the end of an era. Jan 2021 update – The delivery service for new goods ended with Brexit. It is now prohibitively expensive to buy single items in the UK and ship to Spain.
I think that the changes being experienced now will have a profound effect on future removals into Europe.
Spain is still a fabulous place to live, that’s why we’re here. I think these changes are trivial in comparison to the benefits offered by a life in the sun. A bit more red tape, and a more expensive move shouldn’t be a deterrent.
I believe the biggest changes will be within the removals industry itself. It is clear already that customers will choose their removals firm very carefully. This will be to ensure they comply with tax, customs, and legal requirements on both sides of the channel. To continue operating, removal firms will need to demonstrate competence dealing with tax authorities.
UK companies that might have done a few European removals every year will probably not bother in the future. This is because of the extra work involved. They will instead pass the work on to EU specialists who will be able to easily undertake the work.
Man and Van removals to Spain
I must admit that I find it difficult to see a place in the market for the traditional ‘man and van’ who transports belongings for a bit of cash. Customs rules may mean the amount of smaller moves to Europe will decrease anyway, because of the more stringent rules for residency in a lot of countries.
If this happens, the industry as a whole will have a much more professional image, as smaller operators will not be able to survive in European removals in their present form. Man and van may well only operate at local levels, being forced to comply with local laws.
It will certainly be an interesting year for those of us in the industry.
Brexit Horror stories and the future of removals to and from Spain and the EU has been written by Mick Cox, founder of Indalo Transport and Indalo Storage. Published 14th January 2021.
Indalo Transport continues to operate regular trips between the UK, Ireland, France and Spain with storage hubs in Gosport (UK) and Almeria (Spain). Our service and processes include all dealings with HMRC and other regulatory authorities in all countries, on behalf of our clients.
Indalo Transport and Indalo Storage: The only names you need for a stress free European removal.
Read our May 2021 UPDATE : The return of the Specialist Remover – A review of Removals from the UK to the EU – now we are Brexit + 5 months
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