SOME 90,000 companies in Spain have received letters from the government warning of the potential effects of a no-deal Brexit.
The country’s tax agency, known as the Hacienda, has recommended the at-risk businesses take steps to adapt to the possibility that the UK could leave with EU without an agreement on October 31.
The letters list the new customs, tax and health-related requirements that businesses will have to meet to engage in cross-border trade.
The industries which will face the biggest challenges will be those which export agri-food and animal products to the UK, thanks to the new health and quality requirements which could be imposed.
“The new formalities include filing a customs form for each consignment, going through customs controls, paying tariffs and other duties, and the need for health or other types of certificates,” warns the letter.
Medicines and other chemical products will also have to meet new standards, once the common EU framework no longer applies.
The Tax Agency’s website also has information regarding value-added tax (VAT) after Brexit: “If no agreement is in place by the exit date, the UK will be considered a third country without any specific preferential treatment. This situation could have a significant effect on the organisation and logistics of economic operators, which should evaluate this impact and get a head start on the necessary paperwork wherever possible.”