An open letter to our all of our European customers
As I am sure you are aware, the UK is formally due to leave the European Union at 11pm on 29th March 2019. As of today, 9th January 2019, there is still no formal agreement in place to prevent the UK from leaving the EU in an abrupt manner, widely referred to in the UK as a 'no deal Brexit'. As UK citizens, Simon and myself have been closely following the political situation here in the UK from the moment the decision was made during the referendum held on 23rd June 2016.
Factory 35 is a UK company that trades globally and for some time we have been trying to establish what impact this decision may have on future business with our EU customers. However, like many business across all of the EU, the uncertainty surrounding how the UK will leave the EU has been something that has made planning for anything other than a 'no deal' scenario impossible.
Throughout 2018 Simon and myself have had regular discussions surrounding Factory 35 post Brexit and with the deadline now less than three months away, we feel it is important to outline how we intend to conduct business with all our EU customers following the 29th March 2019. Therefore, in the event of a 'no deal Brexit' taking place, where the UK will switch to World Trading Organisation [WTO] rules by default, it is our intention to conduct business with our EU customers in the following way.
We have no plans to immediately change our pricing and all costs will continue to be provided to EU customers in EUR.
We don't foresee the current UK government applying any tariffs at this time due to their pro-free market approach, therefore we do not plan to add any additional costs.
As there will no longer be a UK/EU 'zero rated EC VAT' scheme, we will not require a VAT number from VAT registered businesses and we will no longer charge VAT to non VAT registered EU customers.
We aim to ensure Factory 35 remains compliant with current and future EU regulations so we can continue to work with all EU customers.
Where double taxation treaties exist we will work with customers to provide any necessary paperwork that may be required.
This information is correct as of 9th January 2019 and may change in the weeks ahead as the political situation develops, we will continue to follow events and make any updates to our current plans when further information is available.
Regardless of the outcome it is our intention to continue providing the same level of service you have come to expect and our plan should mean your experience when working with us is no different from now. As a small business that operates in a global market, Factory 35 is designed to be accessible to customers from all over the world and will continue to remain so.
On a personal note, Simon and myself spend several months each year working in various EU countries and are looking forward to continuing to do so through 2019 and beyond. So come April, no matter what, we will continue to be here working with all of you and very much look forward to it. If you wish to discuss any concerns, please contact us and we will be happy to discuss them.
Co-Founder, Owner & Photographer