SPAIN’S tax office has warned Spanish businesses of the potential consequences of a no-deal Brexit.
The Hacienda sent letters to thousands of export companies with tips on how to adapt to the worst case scenario should the UK leave the EU on March 29 without a deal.
The warning details how a no-deal would mean trade flows between Spain and Britain will ceased to be considered internal European transactions and will be subject to customs formalities.
“Brexit could have a significant effect on your organization and its logistics flows,” the letter reads, “If there is no exit agreement that includes a transitional period, this will mean that on March 30 the UK will leave the single market and the customs union.”
The number of Spanish companies exporting to the UK grew by 8% between 2012 and 2017 to 11,695 businesses.
The UK was the fifth top destination for Spanish exports in 2017, after France, Germany, Italy and Portugal.