While each company will have its own hoops to jump through and boxes to tick, the government has announced guidance relevant to businesses in the gambling sector as the end of the Brexit transition period approaches. The question is: are we ready?
The government has released a guide to Brexit for the gambling sector that outlines what businesses need to do as the UK’s transition period to leave the EU comes to an end.
The guide outlines the steps that businesses in the gambling sector need to take by 31 December, such as ensuring that EU employees have applied to the EU Settlement Scheme, using and storing data in compliance with regulations, and checking which changes will have to be made to the business and the services and products it provides.
For the amusements industry, changes to the movement of goods within the EU may be the most relevant section of the guide. Some changes will come from the start of next year, with imports from the EU now having to be declared in the same way that imports from the rest of the world are.
“From 1 January 2021, you’ll need to make customs declarations when you import goods from the EU. These rules currently apply to importing goods from the rest of the world, including Switzerland, Norway, Iceland and Liechtenstein,” state the government guidance. “You can make the declarations yourself, but most businesses use a courier, freight forwarder or customs agent.”
Furthermore, the rules for importing some types of goods will change, particularly the marking standards for manufactured goods, and businesses will also need to have an EORI number that starts with GB to import goods from 1 January 2021. Rates of tax and duty may also change, however the UK’s new global tariff has the same 0 percent tariff on coin/card operated games as the EU’s common external tariff, meaning there will be no additional tariff costs to important coin/card operated games from the EU.
As well as changes to the movement of goods, there will also be changes to accounting and reporting requirements following 31 December 2020. From then, all companies will need to use ‘UK adopted IAS’ instead of ‘EU adopted IAS’ for financial years beginning after 1 January 2021.
While both sets of standards will be the same on 1 January 2021, there may be differences later if the UK adopts or amends standards and the EU does not. Some types of companies will also need to take further action from January 2021, such as listed companies and those with parents or subsidiaries in the EU. While it may not affect many companies in the industry, UK based companies will also no longer be able to register or renew .eu domains if the business is not established in the EU and the owner of the business lives outside the EU and is not an EU citizen.
The information from the government will be updated if any further changes are necessary, and for more tailored guidance they are offering a “Transition self-checker” that is available on the government website.