Prezentacja Brexit - end of transition period.

1. Brexit – end of the
transition period
How well are you prepared?
2 December 2020

2. PwC & PwC Legal
Your hosts of today
Claire De Lepeleire
Director
PwC Belgium
M: +32 475 91 08 68
E: claire.de.lepeleire@pwc.com
James Hughes
Minister-Counsellor for Economic Affairs
British Embassy Warsaw
E: james.hughes@fcdo.gov.uk
Marcin Majewski
Manager
PwC Poland
M: +48 519 504 253
E: marcin.majewski@pwc.com
Krzysztof Kamieniak
Manager
PwC Poland
M: +48 519 507 671
E: krzysztof.kamieniak@pwc.com
Tomasz Kassel
Partner
PwC Poland
Maciej Żelewski
Senior Consultant
PwC Legal - Poland
T: +48 519 506 551
E: maciej.zelewski@pwc.com
Emilia Piechota
Director
PwC Poland
M: + 48 519 504 303
E: emilia.piechota@pwc.com
2

3. PwC & PwC Legal
Overview
3
Where are we?1
Legal2
People and Mobility3
VAT and Customs4
Q&A5

4. Where are we?

5. For the latest updates on how to prepare for 1 January 2021, visit: https://www.gov.uk/eubusiness

6. PwC & PwC Legal
Where do we stand on Brexit?
6
Companies will see their corporate tax or P&O structures, and more importantly their customs & international trade activities dramatically impacted by Brexit.
Whether Brexit happens with a FTA or with tariff exemption on certain products, they will need to handle customs formalities at the UK/EU border, request trade
authorisations and licences, prepare for border controls, implement compliance procedures, handle preferential origin, ensure customs value determination among
other.A No-Deal Brexit would only increase the financial impact.
31/01/2020
Withdrawal Agreement &
Start of the transition period
Option 1
Conclusion of
a FTA
Option 2
Agreement on certain fields
Option 3
No-Deal
Brexit
31/12/2020
End of the transition period
BREXIT
30/06/2020
Extension request deadline
But UK already formally rejected any extension
31/12/2022
End of the extended
transition period & Brexit.
BREXIT
Option 1 Option 2 Option 3
31/12/2021
End of the extended
transition period & Brexit.
BREXIT
Option 1 Option 2 Option 3
Option 4
….Last
minute
Political
Twist..

7. Legal

8. PwC & PwC Legal
A no-deal Brexit will change the status of the EU-UK legal relationship from Member States to Third Parties.
The with lack of applicability of EU laws in the UK and the UK’s status as a third party state will impact
various legal areas.
In particular:
Brexit and the legal situation
8
Regulatory Compliance Public Tenders Access to Market
Data Protection Competition Policies State Aid

9. PwC & PwC Legal
Access to market
9
Public TendersAccess to market
• Decision on the applicable legal framework
• Admissibility of the third party state bidder or offered
products or services
• Status of UK bidders in EU tenders
• Status of EU bidders in UK tenders
• Formal requirements in tenders and mutual recognition
on systems
• Will the market be open to third party states?
• What formal rules for sales and imports to UK or EU
will apply
• Issue of mutual recognition of standards, permits or
qualifications
- Transport
- Financial sector
- Professional qualifications
- National security standards
• Transnational jurisdictional issues and proceedings

10. PwC & PwC Legal
Regulatory Compliance
10
Impact on corporate structure or business modelContinuing compliance
• How current manufacturing processes will be impacted
if the manufacturing chain passess through third party
states
• How will applicable national or EU standards be policed
and recognized?
• Will the corporate structure (f.e. HQ in UK) impact the
validty of EU permits (f.e. Air travel).
• Will corporate structure (f.e. HQ in UK) impact M&A
strategies and projects (f.e. Investment control laws)
• Will permits, conformity assessments or other
clearances retain their validity?
• Will regulatory standards continue to be mutually
recognized?
• Validity of permits issued prior to Brexit day
• Way forwards for future product
• Impact on proceedings ongoing on Brexit day
• Sectors and key areas:
- Pharmaceuticals
- Food and Drinks
- Financial
- Healthcare
- Technology
- Environmental Protection

11. PwC & PwC Legal
Competition Policies
11
State AidCompetition Policies
• Will state aid review policies diverge?
• What will be the new model for permitted state aid?
• What will be the tests for assessing and reviewing
permitted state aid?
• How will relief actions across EU in relation to COVID-
19 be monitored and policed
• Will competition policies be uniform across UK and
EU?
• Will current market practices fall short of competition
laws or collusion regulations?
• Do distribution structures have to be reassessed?
• Review of dominance in changes to market definitions?
• M&A policies and strategies need to take into
consideration additional merger control processes

12. PwC & PwC Legal
Data Protection
12
Acquis Communautaire
EU Charter of Fundamental Rights
• Right of protection of personal data (art. 8)
GDPR
• Transfer of personal data to third countries only if equivalent privacy protection offered
• Commission adequacy decisions
• Standard Contractual Clauses (SCC)
CJEU
• Schrems II (C-311/18)
TransitionPre-Brexit 1 January 2021
Adequacy
Agreement
No
Agreement
Political Declaration – Negotiations

13. Employment and assignments post Brexit –
immigration, tax, social security

14. PwC & PwC Legal
Immigration to Poland – citizens’ rights
14
The beneficiaries of the Withdrawal Agreement:
• Will retain their rights after the transition period (work and stay);
• Will have to exchange the registration documents until 31.12.2021.
UK nationals arriving to Poland starting 1 January 2021:
• Will become “third-country nationals” requiring appropriate work permission;
• Will not need a visa for short trips;
• Residence permit (or long-term visa) will be required for stays exceeding 90 days in 180 day
period.

15. PwC & PwC Legal
Immigration to Poland – UK posted workers
15
Assignments before 31 December 2020
• Draft amendment to Act of Foreigners envisages special residence permit for posted workers;
• Application for temporary residence possible until the end of 2021;
• The permit would be granted for 5 years once at a time;
• After 5 years of uninterrupted stay - possibility to apply for permanent residence permit;
• Probable exemption from the obligation of possessing work permit in Poland.
Assignment after 31 December 2020
• The secondment will take place on general terms* (meaning that on the same terms as those
related to individuals from third countries);
• Employers will have to comply with the provisions related to secondment to Poland and ensure
legal stay and work seconded employees.
* Unless the Brexit Deal will state otherwise

16. PwC & PwC Legal
Tips for the companies and UK citizens
16
UK citizens living in Poland
• Check if you have already registered your stay in Poland. If not, you should visit the Provincial
Office as soon as possible to avoid any difficulties in the future.
Companies hiring UK citizens in Poland
• If you are planning to hire UK national, check how his stay and work will comply with the
provisions during and after the transition period.
Business Travelers from the UK
• Check for permissible activities under the business trip to make sure that the work permit is not
required.
• Travel tracking systems calculating the length may prove to be useful.
Updated immigration requirements in the UK

17. PwC & PwC Legal
Social security
Regulations (EC) 883/2004, 987/2009, 859/2003
Coordination of social security during the period of Withdrawal Agreement (until 31 December
2020) – remains fully applicable;
Coordination of social security after the end of Withdrawal Agreement – will be applicable only to
situations that continue to exist.
17

18. PwC & PwC Legal
Social security implications of global mobility as of 1 January
2021 – new postings
18
Posting from Poland to the UKPosting from the UK to Poland
Lack of a bilateral totalization agreement between the UK and Poland
No basis to contribute to the Polish social
security system;
As a result, no access to the benefits from
the Polish social security and health
insurance system;
UK social security liability will end after the
first 52 weeks of posting (subject to
eligibility).
Polish social security and health insurance in
general payable to the Polish system;
UK social security liability applicable from
day 1 (although, guidance from HMRC may
change and a liability might begin after 52
weeks).

19. PwC & PwC Legal
Personal income tax – implications post Withdrawal Agreement
UK- Poland Double Tax Treaty remains applicable
Unless Polish domestic regulations are amended, certain tax reliefs will no longer be
applicable as of 1 January 2021:
• Possibility of joint married tax filing;
• Exemption from capital gains tax on sale of real estate property;
• Employee’ social security contributions and pension programs;
• Charity income deduction.
19

20. Impact of Brexit on VAT, Customs
and International Trade

21. PwC & PwC Legal
1 – I sell to customers in the UK
General
21
ICT become export from EU and import into the UK
Who will act as importer of record in the UK
You as an EU Supplier:
Formalities
• EU/ UK EORI number required by EU supplier
Ship-from country
• Customs declarations (freight forwarder or customs agent)
• Review product classification as this will determine import tariff
• Document the movement
Ship-to country
• Payment of UK VAT/import duties
• Customs declarations (freight forwarder or customs agent)
• Apply for a UK VAT registration number
• Issue a correct invoice with UK VAT
• Set up UK VAT and Intrastat compliance
ERP
• Adapt your ERP to handle new flows
Your Customer in the UK:
Formalities
• EU EORI number required by EU supplier
Ship-from country
• Customs declarations (freight forwarder
or customs agent)
• Review product classification as this will
determine tariff
• Issue an invoice
• Collect export confirmation to apply the
0% VAT rate / exemption
• Declare for VAT purposes
ERP
• Adapt your ERP to handle new flows
Invoice
Goods
How to be determined?
Incoterms play an important role: DDP = supplier, EXW = customer

22. PwC & PwC Legal
1 – I sell to customers in the UK
Specific attention points – VAT
22
Simplifications
• Triangulation, call-off stock, temporary movement of goods for processing
• Chain supplies - e.g. quick-fix rules
UK Import VAT
• UK VAT registered traders will be able to account for import VAT on their VAT return by using postponed VAT
accounting
Northern Ireland
• Remains part of EU Customs Union
• Sale to customer in Northern Ireland = Intra-Community supply
• To be reported in VAT return, EC Sales Listing and Intrastat return
• Introduction of specific NI VAT number - Prefix XI
Intrastat
• Intrastat requirements in UK (arrival) still required
B2C Supplies
• For consignments of value below £135 import VAT will no longer be due at the border. VAT will be charged on
the goods as if they were supplied in the UK and accounted to HMRC on the UK VAT return
• UK VAT registration required
Invoice
Goods

23. PwC & PwC Legal
1 – I sell to customers in the UK
Specific attention points – customs
23
Customs value
• One of the three elements that determines customs debt;
• Consider incoterms!
• What if you sell to local distributor/ branch - increase of customs value?
Phased implementation of customs border import process
• 1 January 2021 – Importers will not be required to submit full customs declaration to HMRC for imported goods
(with the exception of controlled goods such as excise goods i.e. alcohol);
• 1 April 2021 – products of animal origin (POAO), e.g. dairy and meat products, regulated plant products, will
require both pre-notification (via IPAFFS system) and relevant health certification;
• 1 July 2021 – Importers will be required to make full customs declarations, and full safety and security
declarations;
• Phased implementation does not apply for goods moved between GB and NI.
UK Global Tariff applicable as from 1 January 2021
• Elimination of customs duties on products important for the UK industry a Rounding of duty rates (4,5%
becomes 4%);
• Elimination of 'nuisance' tariffs (all tariffs below 2%);
• Elimination of additional duties like meursing duties.
Apply for a deferment account for the UK customs duties
Consider specific customs procedures
• CFSP
Invoice
Goods
Different types of IM declarations
°) Deferred declarations
°) Standard declarations
°) Simplified declarations
°) Transit

24. PwC & PwC Legal
2 – I purchase/ source from suppliers in the UK
General
24
ICT become export from UK and Import into the EU
Who will act as importer of record in the EU
Your UK Supplier:
Formalities
• UK/ EU EORI number required
Ship-to country
• Customs declarations (freight forwarder or customs
agent)
• Register for VAT purposes in the EU – with a fiscal
representative?
• Pay import duties/import VAT (apply for an import
deferral license)
• Issue an invoice with local VAT (or with local reverse
charge mechanism)
• Set up EU VAT compliance
ERP
• Adapt your ERP system to cope with changes,
e.g. invoice statements, reporting in VAT return
You as an EU Customer:
Formalities
• EU EORI number required
Ship-to country
• Receive an invoice without VAT (outside of scope of
EU VAT)
• Customs declarations (freight forwarder or customs
agent)
• Pay import duties/ import VAT (use an import
deferral license)
• Declare and report an importation in EU
ERP
• Adapt your ERP system to cope with changes
Invoice
Goods

25. PwC & PwC Legal
2 – I purchase/ source from suppliers in the UK
Specific attention points – VAT
25
Invoice
Goods
Import VAT
• Where are the goods to be released for free circulation - e.g. Poland, the Netherlands, Germany?
• Review whether MS of importation foresees in an import deferral license (most EU MS require an application)
Fiscal Representation
• UK companies may be required to appoint a fiscal representative
• Example - Poland, Belgium, the Netherlands
Northern Ireland
• Remains part of EU Customs Union
• Purchase whereby goods are shipped from Northern Ireland = Intra-Community acquisition
• To be reported in VAT return, EC Purchase Listing and Intrastat return
Intrastat
• Transactions no longer to be reported in Intrastat Arrivals - pay attention to NI
B2C Supplies
• As from 1 January 2021 (end of Brexit transition period), UK will be a third country (non-EU country)
The Non-Union scheme will be applicable for supplies made from the UK to EU MS
Refund of VAT
Refund as regards VAT which was paid in the UK or a MS before the end of the transition period – electronic procedure in MS of
establishment to be submitted before 31 March 2021
• Refund as regards VAT which was paid after the end of the transition period:
- 13th procedure
- Reciprocity condition may be applicable
- MS can require the appointment of a tax representative

26. PwC & PwC Legal
2 – I purchase/ source from suppliers in the UK
Specific attention points – customs
26
Invoice
Goods
Customs value
• One of the three elements that determines customs debt
• Consider incoterms !
• What if you sell to local distributor/ branch - increase of customs value?
No phased implementation of customs border import process
• 1 January 2021 - normal rules will apply
WTO Tariff applicable as from 1 January 2021
Apply for a deferment account for the EU customs duties
Consider specific customs procedures

27. PwC & PwC Legal
Specific attention points
Cut off date
• If goods are shipped before end of transition period BUT arrive after = intra-Community transactions
• Correction - e.g. year-end rebates - remain intra-Community transactions - but how to correct EC Sales Listings?
• Return of goods - exemption if (re) importation within 3 years period
Customs value
• 1to1 supplies = transaction value
• Impact on sales through local entity/ branch?
Trading under the Northern Ireland Protocol for Goods
• Goods sold between GB and NI: UK (import) VAT to be charged by the seller (unless customs procedures, domestic
R/C applies or other specific procedures apply) - customer can reclaim VAT as input VAT subject to the normal rules;
• Goods sold between NI and GB: same rules apply - (import) VAT to be charged by the seller (unless customs
procedures, domestic R/C applies or other specific procedures apply) - customer can reclaim VAT as input VAT
subject to the normal rules
• Goods sold between GB and EU (through NI): similar to direct movement GB to NI + export to the EU - derogations
possible
• Goods sold between EU and GB (via NI): import VAT due - seller needs to register for VAT purposes!
• Movement of own goods from GB and NI: VAT is due via the UK VAT return - if used for taxable transactions -
normal deduction rules apply - potential reclaim of previously unrecovered input VAT
• Movement of own goods from NI to GB: No VAT is due (not considered as a deemed supply)
• Intra EU simplifications like triangulation remains available for goods involving EU and NI movements

28. PwC & PwC Legal
Brexit 2020 Readiness
In which stage is your business?
Review and understand
Understand and
assess impact
Design
Design future supply chains
and create action plan
Implement
Implement changes required and
monitor government announcements
Embed and test
Embed changes and test
Be agile
Remain agile and prepare for future
changes
Stage 4 Stage 5Stage 3Stage 2Stage 1
Apply for VAT registrations and EORI numbers, build
systems and controls to ensure tax collection and accounting is
accurate
Assess timescales for applications
across jurisdictions alongside
business need and prioritise
Identify need for new EU or UK VAT or EORI registrations
Do the registrations
obtained enable you to
trade as you intend?
Remain flexible
to change
Optimise customs duty costs – Optimise customs strategy including valuation and origin
(Free Trade Agreements). Gain new HMRC approvals to mitigate increased tax costs of Brexit
i.e. a deferment account, Customs Comprehensive Guarantee and Customs Warehousing
Consider changes
needed and prioritise
application
Custom tariff classification, origin and
valuation review, identification of duty and
compliance costs
Do the benefits outweigh
the costs as intended?
Remain flexible
to change
Create a
detailed
action plan
Supply chain optimisation (mitigate increased Brexit costs – Indirect tax (new proposed Customs Tariff), customs
declaration charges and physical supply chain costs). This can involve changing the physical supply chain, the role the
business plays within it, and associated systems
Brexit supply chain review.
Identify supply chain roles
and costs
Does the restructure
enable you to trade
efficiently?
Remain flexible
to change
Ongoing review of: (i) new IT requirements, developments and deployment times;
ii. Developments in trade arrangements between GB, NI and RoI;
iii. New government initiatives and schemes
Embed and test changes
Establish Brexit
Committee
Allocate
responsibilities
Remain flexible
to change
Design new contractual clauses, and update existing contract with existing
suppliers and/or find alternative suppliers for your goods and services
Identify key and ‘at risk’
contracts – prepare
communication plan
Supplier contract review. Ascertain if suppliers can continue
to deliver in the same way, within your expected lead time
and budget
Remain flexible
to change
Are amended clauses fit
for purpose? More
changes needed?
Apply for new licences requiredDetermine who will hold/apply for import and export licences
Remain flexible
to change
Do the licences obtained
enable you to trade as
you intend?
Prioritise and plan actions
based on business need and
application complexity
Post-Brexit

29. PwC & PwC Legal
Brexit Readiness
How can we assist...
29
Day 1 readiness Finish Line Support “No time to lose”
• Your company has set up a Brexit task force
• You have conducted a multi-department
assessment
• You have implemented the changes identified
• You have lodged your application requests
• Your company has set up a Brexit task force
• You have conducted a multi-department assessment
• You have not yet implemented the changes identified
• You have not yet lodged or obtained all required
applications
• Your company has set up a Brexit task force
• You have conducted a limited (or not) Brexit
assessment
• You have not yet highlighted the changes to be
made nor the priorities
• You have not yet started the process to lodge the
required applications
1 2 3
1. Strategic Workshop to go through the Project Plan,
Timeline & Implementation plan
2. Tailor-made trainings
3. Stand-By team on the 01/01/2021
Purpose would be to ensure that no aspects have not
been addressed, risks not being mitigated, opportunities
not pursued
Discussion with your Customs Brokers & Tax
Representatives in order to ensure “Day 1 Readiness”
1. Strategic Workshop to go through the Project Plan,
Timeline & Assessment realized
2. Run a High-Level/Limited Brexit Impact Assessment
(data mining)
3. Determine High impacted departments, flows, activities
4. Draft & Roll-Out implementation plan
5. Lodge Required Applications
6. Training of the various teams
7. Stand-By team on the 01/01/2021
1. Strategic Workshop with Key Stakeholders
2. Conduct in-depth workshops for most impacted
departments
3. Run the Brexit Impact Assessment (data mining)
4. Determine Priorities in the concerned departments,
flows, activities
5. Finalize the assessment document (incl.
Implementation plan & timeline)
6. Roll-Out implementation plan & Lodge required
applications
7. Training of the various teams
8. Stand-By team on the 01/01/2021

30. PwC
Q&A

31. Thank you
© 2020 PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością sp.k.. All rights reserved.
Name "PwC” included in this document refers to PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością sp.k. with registered seat in
Warsaw, at ul. Polna 11, 00-633 Warsaw, KRS number 0000270501, Tax ID No. (NIP) 7010051646, REGON Statistical No. 140816658, having the status
of a large enterprise within the meaning of the Act of 8 March 2013 on counteracting excessive delays in commercial transactions, whose register
documents are kept by District Court for the Capital City of Warsaw in Warsaw, XII Commercial Division, company being part of
PricewaterhouseCoopers International Limited network, consisting of firms which are separate legal entities. This content is for general information
purposes only, and should not be used as a substitute for consultation with professional advisors. At PwC, our purpose is to build trust in society and
solve important problems. PwC is a network of firms in 157 countries with more than 276,000 people who are committed to delivering quality in
assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.pl.