The service sector makes up 80% of the UK’s economic output and brings in huge amounts of revenue for the country every single year. While the UK and EU agreed to a Brexit deal on the movement of goods, there is effectively no deal for services. UK companies have lost the right to provide services in many sectors outside of the EU.
A summary of some of the key changes:
- Many sectors will now be required to register for VAT in the EU.
- Many national professional qualifications will no longer be recognised.
- The EU has largely not deemed UK rules for financial services as equivalent.
- Financial service providers can no longer rely on the ability to “passport” from the UK into the EU.
- Sale of construction services are prohibited in certain EU countries.
Benefits Of Establishing A Branch In Cyprus
Establishing a branch of your UK operations in Cyprus can circumvent the issues that have arisen since Brexit. This is because it is a one stop shop for VAT, which means that you can avoid setting up multiple VAT registrations across the EU. Operating from within Cyprus will also allow you to access a wealth of expertise, which resolves many of the concerns about the recognition of professional qualifications. If you then become authorised under a CySEC-regulated Alternative Investment Fund (AIF), this will alleviate any passporting concerns.
For more sector-specific benefits that exist here in Cyprus, contact us today.
EQ:IQ And The UK Service Sector
We can offer a broad range of services to the UK service sector which will prove to be hugely beneficial in a post-Brexit environment.
Our recommended services include:
- Company and trust formation
- Regulatory support
- Banking services
- Audit, accounting and payroll services
- Tax advice and structuring
- Provision of serviced offices and commercial substance
- Access to trained and qualified professionals