Since Brexit, UK imports into Cyprus have halved. Cypriot importers have instead turned to suppliers located in the EU. The statistics were revealed by the Cyprus Chamber of Commerce and Industry.
While Covid likely played some role in the decrease, the major factor is Brexit, according to the Chamber’s acting secretary.
The new challenges of UK-EU trade
Cypriot importers have similar concerns to other businesses located in EU markets. Following Brexit, imports from Britain into Cyprus are now subject to import VAT and, in many cases, customs duties.
While the EU-UK trade agreement allows for tariff-free trade, the conditions that need to be met are stringent.
In addition, certain products, such as agricultural goods, now require certifications, such as veterinary certificates. For many importers, the cost and complexity of importing from Great Britain now outweighs the benefits.
Businesses situated in the UK report similar difficulties. As a 2021 survey revealed, half of UK exporters were experiencing challenges adapting to Brexit. Manufacturers in particular experienced new obstacles when shipping goods to EU countries.
Overcoming Brexit export challenges
It’s 2022 and many importers are still coming to grips with the challenges of Brexit. In order to remain competitive, you need smart import VAT strategies that minimise the cost of trade and enhance cash flow.
Get in touch with VAT IT for advanced VAT strategies. We can even help you with customs, logistics and shipping.