The official Brexit date has now passed and the process has begun for the UK’s full departure from the European Union over the coming months, what does this mean for business infrastructure and what do you need to know?
New Business Director at IT software solutions provider, KFA Connect, Richard Austin sets out his advice for businesses and eCommerce operations: “Now that the withdrawal from the EU is underway, there’s several considerations that businesses need to be aware of, specifically around IT systems.”
“Firstly, if you are a UK-based business buying or selling into Europe you will need to plan for potential changes to VAT.”
KFA Connect – which provides tailored IT solutions and IT support for businesses – recommends allowing more time for delivery and receipt of goods, as changes to systems at customs in 2021 will require additional time to clear and be prepared for delays, at least initially.
Richard continues: “If you’re relying on procuring products from the EU, then ensure that your forecasting is as accurate as possible, allow for more time to make sure that you can continue to meet production demands.
“If you have an eCommerce arm to your businesses, you may need to review your pricing, allowing for additional charges from suppliers, customs and logistics providers. The relocation of offices or accounts from the UK to EU countries will require system changes to add additional locations and integrate with other systems.
“The physical location of where an eCommerce website is hosted will become more important to your business,” explains Richard. “Companies with websites currently hosted in EU member states may decide to move these back to the UK. It might also be worth considering new language translations, new delivery methods, new product pricing in foreign currency or new VAT charging functionality if new trade deals are struck with different countries.”
“New systems and processes may increase the requirement for purchase orders and invoices to be processed using Electronic Data Interchange (EDI).”
“If you are a UK business or organisation that receives or holds personal data from contacts in the EU, you will need to take extra steps to ensure that the data continues to flow after Brexit, whilst adhering to GDPR regulations.”
As UK businesses head into the transition period for the remainder of 2020, business leaders should focus on planning, to ensure all opportunities are considered and advice sought.
Richard concludes: “Although the government has committed to a ‘business as usual’ phase until the end of this year, now is the time to start thinking about 2021 and beyond and planning for a no-deal. Make sure you seek advice to check that your IT systems are ready for the challenges and opportunities.”