Changes in VAT: What that means for you

By Yasmine Lingemann

On the 1st of July 2021, EU VAT rules are changing. It’s affecting all businesses, but mainly B2C e-commerce sellers as well as online marketplaces based inside and outside EU that facilitate the sale of goods to customers in the EU.

Here at the British Chamber of Commerce EU & Belgium, we’ve got you covered. If you’re interested in learning more about the changes to VAT in the EU, why not come along to our free upcoming event on the 29th June: EU VAT Rules for E-Commerce: What’s Changing on 1st July? Member VAT experts will answer the following questions with practical case example explanations and advice:

What changes on July 1st?
What transactions are impacted by the changes?
Who is affected?
How will these upcoming EU VAT changes impact me and my business?

For businesses outside the EU that are trading to EU based consumers, there are 3 main changes:

1. VAT exemptions on low-value goods removed
   VAT exemptions on low-value goods (worth €22 euros or less) coming into the EU will be removed. VAT will now be charged on all commercial goods imported into the EU regardless of their value. For goods that are imported into the EU, VAT will apply at the rate set in the buyer’s country. For consignments with a value of €150 or below, this can either be charged at the time of the sale by using the new IOSS- Import One Stop Shop- or be collected by the customer’s declarant.
2. An IOSS will be introduced
   An IOSS, Import One-Stop-Shop for a single EU-VAT return will be introduced. Businesses signed up to the OSS will no longer have to register for VAT in every EU country. Instead, they can reduce their admin by logging all their eligible cross-border EU sales to consumers in a single electronic quarterly return. IOSS users will only need to pay the VAT to their home Tax authority. This will then forward it to the countries where the goods were sold. Those (based in one member’s state) making below €10,000 per year on cross-border sales of goods to consumers can charge their domestic VAT rate and report the sales as part of their regular domestic VAT return. 
3. VAT will be the e-commerce marketplaces responsibility
   Rather than the seller, certain marketplaces like e-commerce sites will become liable for collecting, reporting, and paying VAT at the time of sale. This includes B2C imports of consignments up to €150 (when IOSS is used) and on intra-EU and domestic sales of goods by non-EU sellers to EU consumers. As a result, for B2C imports of consignments, with a value of €150 or less where the marketplace has opted in for the IOSS, businesses selling through it must use the marketplaces IOSS number and provide it for the party responsible for making the customs declaration. Non-EU businesses using online marketplaces only for this infra-EU and domestic sale of goods to consumers within the EU might be able to de-register for VAT in EU member states. 
   

What is the IOSS Regime?
IOSS “import one-stop shop” is a new voluntary system for reporting and collecting VAT on B2C sales of low-value goods imported from non-EU countries. Suppliers and online marketplaces selling imported goods to EU buyers can use IOSS to collect, declare and remit VAT to the tax authorities, instead of making the buyer pay the VAT at the point of importation.

IOSS will:

• Simplify customs clearance and import procedures for “low-value goods”. 
• Increase transparency for customers
• Reduce administrative burdens with one registration for all sales. 
• Increase the speed of goods being cleared through customs.
• Simplify logistics, as goods can be imported into the EU via any EU Member State regardless of their final destination.

How to apply?

• IOSS registrations opened on April 1st for all EU member states.
• If you are seller not based in the EU, you will need to appoint an EU intermediary to meet the seller’s VAT obligations under OSS.

Read more about these changes on our UK-EU Trade Hub here. We’re here to help you navigate through these changes as smoothly as possible, so please don’t hesitate to contact us for further information.

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We will continue to update you with the necessary information to help all our members to succeed. We are all in this together, and with the right plans in place, consumer confidence can be restored. BritCham offers support, guidance and specialised coverage for both Brexit and COVID-19, including webinars, workshops and events that will give your firm the tools it needs to navigate through this challenging period.

See our website here for more details on how we can help you: https://www.britishchamber.be/

If it weren’t for Covid: BNG Celebrates Mentoring Schemes’ 1st Anniversary

By Yasmine Lingemann

If it weren’t for Covid-19, this past year would have been very different for me. I would have been able to go on my year abroad (as part of my University course requirement), improve my French, work for the British Chamber of Commerce | EU & Belgium in person, and live in a new city. Instead, our team of 6 interns is working entirely online 9am-6pm every weekday, we have not been able to meet anyone in the team, and we are persevering through what is a very different year to what we had signed up for. As students, this is the time for us to be delving deep into any opportunities we can find, making as many connections as possible to better our chances once we enter the increasingly competitive job market after graduation. That being said, Covid-19 was the inspiration for Brussels New Generation to set up the mentoring scheme, which has ended up being one of our proudest accomplishments to date.

Very early on in the pandemic, as a group of young professionals, we could see how badly it would hit the younger generation. It was clear that many would lose out on invaluable experiences and opportunities, it would be harder to find a job and gain qualifications, especially whilst managing the financial pressures of starting an independent life as a young person. Even if, like myself and the team of interns I work with, you have managed to secure a placement, the requirements and restrictions that Covid-19 forces us to abide by are arguably most impactful to the younger generation. This is why setting up the mentoring scheme was so important to us. We wanted to use our platform to connect our network and provide a space for our community to support one another. The British Chamber of Commerce has a plethora of contacts, people who have been in our position and are eager to share their knowledge and expertise, so we decided to step in and bridge the Chamber with our network of young professionals.

This month marks the first anniversary of our mentoring scheme. We are so proud to announce that we have surpassed our goal of 100 participants in the scheme, and continue to grow as more mentors and mentees join our programme. My team and I have worked so hard to match our mentors and mentees as thoughtfully as possible, and it has been a great pleasure to see how each mentoring relationship has grown and thrived. We are thrilled with the feedback we have received, with one member saying our programme is:

‘A fantastic way to expand your network, learn from someone who’s more experienced in the Brussels Bubble, and participate in reflective conversations to consciously develop your career.’

It is comments like this that keep us going and make us proud of the wonderful team and community we are so lucky to work with.

We would like to thank you all from the bottom of our hearts. This pandemic has been so challenging for us all, and to think that we could somewhat support our community and watch how vivaciously and admirably you have all thrived throughout this period, is an absolute honour. Our team would like to thank you all for the support you have shown us, whether through attending or promoting our events, or spreading the word about our Committee- every little helps, and together, we have a lot to be proud of!

It is for this reason that, with great pride and joy, we would like to invite you to celebrate our Mentoring Scheme anniversary with us. Whether you’re already part of the Mentoring scheme, or still yet to get involved, please join us in our celebrations!

We will kick the event off by introducing you all to the core group, followed by a fun and interactive quiz to test your knowledge on current affairs and the Brussels Bubble. The event will end with a networking & drinks session, to give you the opportunity to meet those on the scheme you may not have had a chance to yet connect with.

We can’t wait for you to join us in celebration of this milestone, and promise a night that will be as close to a night out in Brussels as possible!

We look forward to celebrating with you! Register here to guarantee your spot👇 :
https://www.britcham.eu/event/BNG%2B%2526%2BFriends%253A%2BMentoring%2BScheme%2B1st%2BAnniversary%2BCelebrations%2B%2526%2BQuiz%2BNight/

If you haven’t already, sign up for the Mentoring Scheme where we connect trainees and entry-level professionals with other young, but more experienced professionals here! :👉 https://docs.google.com/forms/d/e/1FAIpQLSfyBHDDk5aBmo-jf1VVhYI2HUi9hiKNprwKPTemR_oA0-D_MQ/viewform

Are Working Mothers Bearing The Brunt Of Covid-19?

By Lizzie Gull

As the world struggles with the pandemic, for some women it has intensified biases that have long existed under the surface. With schools being shut along with the announcement that children at home should not be cared for by grandparents or other vulnerable adults, a backward development in partnerships was felt, with the responsibility for managing children and their education at home mainly falling to mothers, pushing both men and women back into more traditional roles.  

While a study done by Jim Reid (2020) found that some aspects of lockdown were enjoyable, such as more family time and not having to travel to work or taxi children around, it was also shown that the experience of lockdown had a large physical and mental toll, especially for women. An ONS (2020) survey highlighted that, of parents who were home schooling, one in three women agreed that it was negatively affecting their well-being compared with one in five men. Following on from that, many were faced with the choice of struggling to manage a triple shift of paid work, housework and emotional work, or reduce their hours which may result in a loss of progress that they had made in their careers.

For those that experienced this heightened triple shift new biases emerged, as explained in a recent McKinsey study (Women in the Workplace, 2020). One example of these new biases is the fact that the perceptions of women may change when their young children are seen in the background of virtual meetings, potentially fuelling a subconscious assumption from co-workers that these women are distracted and so less committed to their jobs. This is especially significant in performance reviews which may become biased, especially given that working from home lowers the visibility that managers may have into employee’s day-to-day work.

Balanced with the fact that working from home has made many employees feel like they are always on, as it is now harder to make distinctions between work and home, Covid, and the unrelenting pressure on parents to home school their children whilst also working, could force many mothers temporarily out of the workforce. In fact, according to the Women in the Workplace study, one in three mothers have considered career breaks or lowering their job title due to Covid. This could have significant social consequences, with less diverse workplaces which would lead to a lack of role models for women at all levels, and less women in senior positions able to mentor and sponsor other women.

Whilst many of us are now starting to see the light at the end of a very long tunnel in terms of the Covid crisis coming to an end, a survey done by Eurofound (2020) showed that in July 2020 over a third of employed respondents reported working exclusively from home.  Considering that prior to Covid just 15% of those employed in the EU had ever teleworked (European Commission, 2020), the challenges faced by those dealing with the sudden shift to telework were to be expected.

However, as this is starting to become the new normal, with many companies looking at continuing working from home more often than they did before the pandemic, there is now a need for organisations to do what they can to deal with these challenges in a way that ensures equality in the workplace, and retain the employees most affected by today’s crises.

To an extent, this is already being done, as many organisations have taken positive steps to support their employees during the pandemic, keeping them informed on how to access furlough schemes, providing resources to aid remote work, and expanding mental health services.

Fewer companies have taken steps to adjust the productivity and performance expectations set pre-Covid which may now be unrealistic. These steps may involve re-establishing work–life boundaries, for instance, by putting policies in place for responding to emails outside normal work hours. Whilst the measures that a company will be able to take will depend on its size and financial situation, the most critical factor which most companies should be in a position to address is open and frequent communication– so that everybody in the company feels valued and able to voice their issues if they feel they are struggling to cope in the workplace due to the added challenges of the pandemic.

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Here at the British Chamber of Commerce, we will continue to update you with the necessary information to help all our members to succeed. We are all in this together, and with the right plans in place, consumer confidence can be restored. BritCham offers support, guidance and specialised coverage for both Brexit and COVID-19, including webinars, workshops and events that will give your firm the tools it needs to navigate through this challenging period.

See our website here for more details on how we can help you: https://www.britishchamber.be/

BritCham Celebrates International Women’s Week

By Yasmine Lingemann

In light of International Women’s Day (IWD), celebrated annually on March 8th, there is no better time to honour the achievements of women. As women continue to be underestimated, their drive to surpass expectations is fuelled. Hope and inspiration are ignited by female leaders who, against all odds, have changed the world. Phenomenal females who we greatly admire and who have been recognised under the international spotlight include Christine Lagarde, Jacinda Ardern, Margeret Thatcher, Kamala Harris, Helena Dalli, Michelle Obama, and Ursula von der Leyen. Young women are at last able to see a glimmer of hope that one day they could achieve like them. However, we wanted to dedicate this space to showcase women who are not given as much spotlight as other great women, and to give examples of women who are just as impressive but not yet as acknowledged:    

LITERATURE: Amanda Gorman, youngest poet, and first black female poet, to perform at a presidential inauguration.
TRADE: Ngozi Okonjo-Iweala, first female, and first African head of World Trade Organisation.
TECH: Blanca Treviño, Founder and President of Sofftek, and ranked by Forbes magazine as “one of the 10 most powerful women in Mexico”.
LAW: Gloria Allred, Attorney who (amongst many other respectable achievements) filed the first lawsuit in California – pro bono – challenging the denial of same-sex marriage, and won the case, transforming the landscape for LGBTQ+ rights in America.
POLITICS: Sophie Wilmès, first female Prime Minister of Belgium.
BUSINESS: Gita Gopinath, first woman Chief Economist of the IMF.
AEROSPACE: Helen Sharman, first British astronaut in space and first Western woman in space.
MEDICINE: Shi Zhengli, virologist who discovered that Covid-19  belongs to the same family of viruses as SARS, and played a major role in finding the origin of the virus- leading to ground-breaking and life-saving research.
SPORT: Arunima Sinha, first female amputee to climb Mount Everest, as well as 6 other mountains. A motivational speaker, 7 time volleyball player, and winner of the Malala award and First Lady award, amongst many others.

This not only a celebration, but a moment to pause and critically reflect on why over half of the world’s population continues to be underrepresented because of their sex. Even in female-dominated industries such as healthcare, where women make up 77% of the NHS, only 47% of those in senior management positions are female. IWD is about recognising that there remains a huge disparity in how men and women are paid, even when all compensable factors are controlled. That although 60% of graduates in the EU are women, only 8% of the EU’s largest companies have female CEOs, according to the European Commission. It’s about acknowledging that six in ten women in the EU have experienced sexist treatment or suffered sexual assault in the workplace. It is about calling for systemic and social change and fighting for it until we no longer need an International Women’s Day.

The good news is that women are now making up more than a third of top jobs at the UK’s 350’s largest firms. The number of women on boards has risen 50% from 682 to 1,026 in five years- figures released by the government-backed Hampton-Alexander Review, which was launched in 2016 to encourage UK-listed companies to appoint more senior women. It said they showed “a dramatic shift in representation at the very highest levels of British business”. Business Secretary, Kwasi Kwarteng, said: “FTSE companies have made incredible progress in recent years, but we cannot become complacent in building a society where everyone has an opportunity to get on and succeed. Our collective efforts to truly eradicate those barriers and create an inclusive leadership culture doesn’t stop here, this is where it intensifies.” We are also very proud to see that as of October 2020, Belgium’s new federal government, led by Prime Minister Alexander De Croo, has ten male and ten female members. This 50/50 balance is something we hope other countries (and companies) will follow, so that women are fairly represented and rightfully leading in all walks of life.

Gender equality does not only benefit women. Achieving goals such as equal pay allows companies to attract the best talents for a job, and improves motivation, efficiency and overall productivity at the workplace. A study done by Credit Suisse proved that working in a teams of equal parts both powerful women and men evokes a more global and holistic perspective, better organisational performance, and greater innovation. A diversity of talent leads to a broader range of skills amongst employees, as well as a diversity of experiences and perspectives which increases the potential for increased productivity, too. 

This IWD the strap line is ‘Choose to Challenge’. So, what do you choose to challenge? We do not need to tell you that men and women should be treated equally, or to convince you that there is a problem. We ask our readers to act- and we promise to act too. Whether you’re a man or a woman, ‘choose to challenge’ when you feel something isn’t right. With privilege comes power, and there are so many ways you can use that power for good: speak up and call out sexism and misogyny amongst your peers, stand up for and champion women and men equally, hire and promote women that are best for a role, and create an environment that encourages women and men to succeed together, not compete against one another.  

We are proud to say that our team is made up of more women than men, because they were the best people for their roles. But it does not end there- we have a diversity & inclusion team here that makes sure we are prioritising the promotion of diversity and inclusion to better serve the needs of our members, employees, and key stakeholders. We encourage women who have insight into EU politics and business to get in contact with us, join our network, and speak at our events- we would love to hear from you. Please do not hesitate to also let us know if you would also like to get involved with our committee, and stand with us in the fight for equality, diversity and justice. 

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Here at the British Chamber of Commerce, we will continue to update you with the necessary information to help all our members to succeed. We are all in this together, and with the right plans in place, consumer confidence can be restored. BritCham offers support, guidance and specialised coverage for both Brexit and COVID-19, including webinars, workshops and events that will give your firm the tools it needs to navigate through this challenging period.

See our website here for more details on how we can help you: https://www.britishchamber.be/

Supply Chain is Only as Strong as its Weakest Link

By Yasmine Lingemann

Supply chains, the network between a company and its suppliers to produce and distribute a specific product to the final buyer, are being threatened by Brexit, Covid-19, and Government actions. When one step of the supply chain fails, we all fail. Modern manufacturing depends heavily on fast supply chains offering ‘just in time’ delivery of components, often across multiple borders. The Brexit deal agreed on December 24, just one week before it came into force, left little time for companies to adapt. Many manufacturers are still dealing with rebuilding their supply chains following the impact of Covid-19, and should now also consider how to adapt and change to reflect the new trading relationship between the EU and the UK, whilst also collaborating closely with supply chains to ensure there are minimal setbacks. It is vital that Governments do all it takes to keep supply chains open and running smoothly, before everyone ends up losing out.

The global landscape for supply chains has seen better days. Setbacks faced by many supply chains have impacted our world economy. Fishmongers in France state that their supply chain has been set back by 30 years. A global push for carbon neutrality twinned with the effects of Brexit and the pandemic has caused the worst year for UK car manufacturing since 1943, according to the UK’s Auto Industry trade group. Long queues at the borders are not only adding considerably to business expenses, but perishable goods are being thrown away and supermarkets such as M&S in France are seeing empty shelves. M&S spokesman confirmed the lack of groceries was a result of ‘Brexit teething problems’ disrupting supply chains, with lorries trying to cross the Channel being held up for days and thousands of pounds of produce being thrown away. Having no cumulative rules of origin, as well as EU bans on a variety of UK products such as shellfish, have made matters even tougher. The need under Brexit to revamp supply chains to comply with local content rules, the requirement for fresh export certificates and the uncertainties of delayed parts imports are just some of the other barriers now facing manufacturers with UK sites.

The government should consider how emerging/digital technologies, can deliver improved supply chain management and efficiency. Ensuring a smoother transaction of goods at the borders should be prioritised: more workers should be hired to deal with the greater volume of issues, and documentation should be digitalised where possible. We encourage the government to continue to survey the situation at the borders, and to not rule out the possibility of negotiating better terms so that traders on both sides of the channel, as well as the rest of the world, are able to trade more freely. Government support where supply chains are at risk of breaking is needed, especially considering the global pandemic we are in. Supplies of PPE, vaccines, and other essentials, in particular, need to continue to stay open.

The global economy is already under a lot of pressure, now is the time to support one another and ask for help where needed.

If you and your company are affected by anything addressed in this article, our Business, Trade and Investment (BTI) Committee provides a platform for trade facilitation, business networking and knowledge sharing, and to harness and foster expertise. For more information, please click here to see how we can help you.

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Here at the British Chamber of Commerce, we will continue to update you with the necessary information to help all our members to succeed. We are all in this together, and with the right plans in place, consumer confidence can be restored. BritCham offers support, guidance and specialised coverage for both Brexit and COVID-19, including webinars, workshops and events that will give your firm the tools it needs to navigate through this challenging period.

See our website here for more details on how we can help you: https://www.britishchamber.be/

Virtual Strasbourg Flagship Event

By Yasmine Lingemann

What to Expect?

The Programme:

Sponsorship:

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Here at the British Chamber of Commerce, we will continue to update you with the necessary information to help all our members to succeed. We are all in this together, and with the right plans in place, consumer confidence can be restored. BritCham offers support, guidance and specialised coverage for both Brexit and COVID-19, including webinars, workshops and events that will give your firm the tools it needs to navigate through this challenging period.

See our website here for more details on how we can help you: https://www.britishchamber.be/

VAT Post Brexit: Everything You Need to Know

By Yasmine Lingemann

IN BRIEF:

• VAT will now be collected at the point of sale instead of at the point of importation. 
• This means that non-UK retailers who are selling goods directly to a UK consumer with a sale value of less than €150 (£135) must:  
  • Register for UK VAT with HMRC  
  • Collect UK VAT from the consumer 
  • File VAT returns 
  • Send VAT to HMRC 
• The EU are also implementing their own VAT system in July 2021 – where non-EU sellers must register once for the whole EU market.  

WHAT IS THE IMPACT ON BUSINESS?

While organisations would have welcomed the trade deal between the U.K. and EU, signed on December 30, 2020, it came so close to the end of the Brexit transition period on December 31, 2020 that many had insufficient time to fully understand its implications on their activities before it took effect. As people return to work their focus will now be on understanding what changes have taken place as a result of Brexit and the terms of the deal. The economic repercussions of Brexit have been challenging to many, so it is very important businesses familiarise themselves with the changes, so to benefit the most in this difficult time.

Much has been written in the press about how these VAT changes make life more difficult for non-UK businesses. However, if those businesses were already making sales valued at more than £70,000 a year into the UK they would have already been VAT registered and charging UK VAT to customers.  If the packages being delivered are under £135 in value there will be no import VAT or duty to pay and hence, their situation will remain largely unchanged save for the need to complete customs declarations.

For businesses that were not already UK VAT registered and have packages valued at more than £135 or sell via OMP, the position is more complicated.  To determine what your obligations are we would recommend reviewing the following questions:

1. What is the value of my package?
2. If selling via an OMP will you met the conditions for them to take on your obligations to account for UK VAT?
3. If your packages are going to be over £135, what will the customer experience be like if they have to pay extra import costs in addition to your charge?
4. If packages are over £135, will any duties be payable?

Generally, most of the UK’s VAT rules applicable to organisations providing services remain unchanged post Brexit. Specifically, there were no widespread changes to the place of supply provisions (rules that determine the country in which VAT is paid) or rates of VAT. However, changes were made in other areas, and it’s important you familiarise yourself with these changes so that you don’t lose out as a business.

For example, EU retailers sending packages to the UK now need to fill out customs declaration forms. Shoppers may also have to pay customs or VAT charges, depending on the value of the product and where it came from. However, customs charges are the responsibility of the customer, not the retailer, who often has no idea of how much the eventual extra cost might be. They cannot be paid in advance and are levied only when the item reaches the UK.

The end of the Brexit withdrawal period has resulted in many UK VAT rule changes, and organisations will need to adapt to new VAT accounting arrangements. We recommend  that organisations review their sales and purchase transactions and administrative processes to ensure that any changes to the VAT rules have been identified. This will help guard against unexpected costs.

We are here to help you. Head over to our new website here, where you can find support in our Brexit Hub, and get in contact with us or our network to make sure you adapt to these new changes successfully.

THE FACTS:

VAT on GOODS COMING INTO THE UK: https://www.gov.uk/guidance/eu-business-exporting-to-the-uk

UK VAT registered businesses importing goods into the UK are able to account for import VAT on their VAT return, rather than paying import VAT on or soon after the time that the goods arrive at the UK border. This applies to imports from the EU and non-EU countries. 

However, customs declarations and the payment of any other duties are still required. Customs duty (tariffs) applies to some goods and excise duties continue to apply to tobacco, alcohol and certain energy products. Customs and excise duty payments can be deferred to be settled monthly with a duty deferment account. Businesses need to register with HMRC to open a duty deferment account and will need to provide a bank guarantee.

Since 1 January 2021, VAT on imported goods with a value of up to £135 is collected at the point of sale not the point of importation. This means that UK supply VAT, rather than import VAT, are due on these consignments.

Online marketplaces (OMPs) involved in facilitating the sale of imported goods, are responsible for collecting and accounting for the VAT, even when the goods are in the UK at the point of sale.

For goods sent from overseas and sold directly to UK consumers, the overseas seller is required to register and account for the VAT to HMRC. Overseas sellers also remain responsible for accounting for the VAT on goods in the UK when sold directly to UK consumers.

Business-to-business sales not exceeding £135 in value are also be subject to the new rules. However, where the business customer is VAT registered and provides its registration number to the seller, the VAT will be accounted for by the customer by means of a reverse charge. 

AT THE UK BORDER:

Fiscal compliance checks at the UK border include checks to confirm the correct valuation for goods declared at import. Current requirements for importers and agents to assure the completeness and correctness of declarations will remain. Systems should be extended to cover EU imports with a view to identifying false information from consignors, to assure HMRC that clear anomalies can be pulled out from the high scale of declaration volumes typically handled. In particular, importers and agents will need to ensure their systems can identify consignments that are outside the scope of the new arrangements and thus remain liable to import VAT.

Vigilance around consignment valuation will continue, but with more focus on the declaration boundary at £135 or less for this policy. Systems will need to identify excise goods and goods being sent by one private individual to another, which are outside the scope of the new arrangements.

VAT ON GOODS COMING OUT OF THE UK: https://www.gov.uk/guidance/eu-business-importing-from-the-uk

Check with your EU country’s customs authority about the rules for sending goods to the UK from the EU. Make sure you talk to your trading partners in the UK to:

• agree responsibilities
• make sure you have the correct paperwork for the type of goods you are trading

You must make sure you have completed the necessary border requirements.

There will be no substantive change for the movement of goods between Northern Ireland and member states of the EU, including Ireland.

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Here at the British Chamber of Commerce, we will continue to update you with the necessary information to help all our members to succeed. We are all in this together, and with the right plans in place, consumer confidence can be restored. BritCham offers support, guidance and specialised coverage for both Brexit and COVID-19, including webinars, workshops and events that will give your firm the tools it needs to navigate through this challenging period.

See our website here for more details on how we can help you: https://www.britishchamber.be/

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Digitalising Education: The Time is Now

By Yasmine Lingemann

The COVID-19 pandemic has created the largest disruption of education systems in history, and now more than ever, we are learning the ever-increasing importance of an efficient, fair, and accessible digitalised education. A study done by Deloitte found that 75% of teachers believe that digital education content will totally replace printed textbooks within the next 10 years. Now is the time to brush up on your digital skills and prepare for a new wave of education.

On the 25th of November 2020, we were delighted to be joined by Ms Antoaneta Angelova-Krasteva who is the Director for Innovation, International Cooperation and Sport at DG EAC. She gave a detailed presentation on the aims and challenges for digitalising education in the future. Yes, some of these challenges existed before the pandemic, but now that we are forced to do everything online, digital competences are about equipping every member of society with the appropriate skills to be able to take advantage of these new digital opportunities.

The good news is that 62% of respondents to the DG EAC survey reported that their digital skills had increased, and half of the respondents plan to continue to improve them after the crisis ends. Online and blended training was the most popular tool for improving these digital skills. More work still needs to be done, as digital skills become more important in the labour market. Enabling digital connectivity for schools was a top priority with high-quality digital content and user-friendly tools seen as vital for improving the digitalisation of education. It is clear that these tools should also respect privacy and ethical standards in order for people to trust in the digital evolution.

Furthermore, the enhancement of digital skills and knowledge is another priority. Fostering further knowledge on new technology, such as AI, is seen as crucial in enabling the technology further. Also stated was that public-private partnership is important in helping to advance digital skills. The Digital Education Action Plan has set ambitious visions for the next 7 years with the focus on effective use of digital technologies for teaching and learning.

Bridging the Gender Digital Divide by encouraging and facilitating women’s participation in STEM is paramount, as is narrowing the digital divide between rich and poor. We are all expected to keep up with the ever integral digital world, though many are not starting on a level playing field. In order for us all to reap the benefits and use digitalised education for the greater good, funding towards giving under-represented groups the tools, resources, and opportunities must be prioritised.

To finish, the COVID-19 crisis is a turning point for the use of technology in education (up by 95%), and in response, online training is expected to be the most popular tool for improving digital skills and competences. Digital literacy is listed as the top digital skill of the 21st century though the deepening socioeconomic inequalities and creation of new divides is to be addressed and prioritised as a main concern.

At BritCham, our recently launched Digital Working Group reflects the ever-growing importance of these issues, and will help ensure that the we continues to play an active and visible role in the digital policymaking debate which is currently taking place in Brussels, in the UK and globally, helping businesses and traders navigate this complex and rapidly evolving environment to seize the new opportunities that will arise. We look forward to continuing to take part in this important discussion, and encourage you to join us in future events on releated digital topics such as our upcoming event on: Big data: risks or opportunities for Europe? Learning the lessons from social media personal identity profiling: With Eva Kaili MEP.

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BRITCHAM SUPPORT
Here at the British Chamber of Commerce, we will continue to update you with the necessary information to help all our members to succeed. We are all in this together, and with the right plans in place, consumer confidence can be restored. BritCham offers support, guidance and specialised coverage for both Brexit and COVID-19, including webinars, workshops and events that will give your firm the tools it needs to navigate through this challenging period. Click here to register: https://www.britishchamber.be/upcoming-events

SD Worx and BritCham EU & Belgium Present: Brexit FAQ’s and UK-Belgium Employer-Employee Issues

The most up-to-date advice and FAQ’s for UK and Belgium Employer-Employee issues post-January 2021. Advice subject to these issues not being revised as part of the ongoing negotiations.

For more information, contact Daniel Dalton Chief Executive of BritCham EU & Belgium at daniel.dalton@britcham.eu or Hugues Thibaut Head of Public Affairs SD Worx at hugues.thibaut@sdworx.com

Advice before 1st January 2021:

For British citizens in Belgium

Employees that have worked in Belgium and have a residence permit: Can they continue to work and live as before?

British citizens who already lived in Belgium before 1 January 2021 still have an E or E+ card and do not have to take any steps themselves. The Office for Foreigners will call them to issue them with an M card by the end of 2021. British citizens may continue to work here without applying for a single permit.

British Citizen employees that have a family member who has lived in Belgium for a while and has an F or F+ card: Can they continue to work and live as before? 

Yes, this person may continue to live and work here. The Office for Foreigners will issue them with an M card. By the end of 2021, all family members should have this new residence document.

British employees that live in Belgium for work, and return home for weekends: What should they do?

They must request an Annex 15 from the municipality where they work. In 2021, the employee will have this converted into an N card. They may continue to work here without applying for a single permit. 

British employees that only work in Belgium, but take the Eurostar to and from the United Kingdom every day: What should they do?

They should request an Annex 15 from the municipality where they work as soon as possible- this will also be converted into an N card. They may continue to work here without applying for a single permit. 

British employees that have an Annex 15: Do they need a single permit/work permit to work in Belgium in 2021? 

No, they do not need a single permit/work permit. They did not need this in the past either.

British employees that have already been seconded during the transition period, which will continue after 31 December 2020: Will they continue to be covered by British social security?

Yes, they may continue to be covered by United Kingdom social security. As long as the situation continues without interruption, they will be covered by United Kingdom social security. Without interruption does not necessarily only refer to secondment. If simultaneous employment follows the secondment, this will also be without interruption. The British government will continue to issue A1 documents for these situations.

British employees that have been working in Belgium 3 days a week and in the United Kingdom 2 days a week for a number of years under British social security with an A1 simultaneous employment that is allocated for a year: Can they extend it?

Yes, as long as their situation continues without interruption, they may continue to be covered by British social security. The British government will continue to issue A1 documents for these situations.

Belgians in the United Kingdom

Employees that have been living and working in the United Kingdom for some time: Can they still live and work there as before? 

They have until 30 June 2021 to request a settled or pre-settled status. This status allows them to continue living and working in the United Kingdom. By requesting a settled or pre-settled status, they indemnify the following rights:

• Access to the National Health Service.
• The option to continue living and working in the United Kingdom.

Employees that only work in the United Kingdom, living there from Monday to Friday: What should they do?

They have until 30 June 2021 to request a settled or pre-settled status. This status allows them to live and work in the United Kingdom. 

Employees that only work in the United Kingdom, but take the Eurostar to and from Belgium every day: What should they do?
From 1 July 2021, he must have a valid frontier work permit and a valid passport to work in the United Kingdom. Until 1 July 2021, they may continue to use their passport to work in the United Kingdom. The British government is still working on a procedure to apply for this work permit. 

Employee’s secondment period ends on 31 January 2021, and will be extended for one year: Will they continue to be covered by Belgian social security?

 Yes, as long as their situation continues without interruption, they may continue to be covered by Belgian social security. The Belgian government will continue to issue A1 documents for these situations.

Employees that have been working in Belgium and in the United Kingdom for a number of years under Belgian social security, and have A1 simultaneous employment which is allocated for a year: Can they extend it?

Yes, as long as the situation continues without interruption, they may continue to be covered by Belgian social security. The Belgian government will continue to issue A1 documents for these situations.

Advice from the 1st January 2021

For British citizens to Belgium

Does a British citizen living and working in Flanders/Brussels/Wallonia/German-speaking Community for more than 90 days need a single permit?

Yes. The place of employment determines in which region the employment must apply for the single permit.

Does a British citizen travelling to Belgium have to have a visa to work here for less than 90 days?

No, British citizens are exempt from the visa requirement. The employee must be able to prove to customs why they are travelling to Belgium with an invitation or work permit. Customs may ask for any supporting documents such as a hotel reservation.

Does a British citizen who comes to work in Flanders/Brussels/Wallonia/German-speaking Community for less than 90 days within a period of 180 days need a work permit or a single permit?

Yes. The place of employment determines in which region the employer must apply for the work permit. 

Does a British citizen who stays in Belgium to work for less than 90 days need a Belgian residence document?

• Hotel: If the British employee is staying in a hotel, they do not have to register with the municipality. Their British passport is sufficient.
• Apartment/house: If a British citizen rents a house in Belgium, they must register with the municipality. They will then receive an Annex 3 or an Annex 15 as a frontier worker.

A British employer is temporarily seconding a British employee to Belgium (100% employment): Will they continue to be covered by British social security?

This situation has not yet been resolved and is part of the negotiations. If there is no agreement, British citizens can come to Belgium for 52 weeks under British social security. If they stay for longer, this situation must be assessed further.

A British employee works in Belgium 3 days a week and in the United Kingdom for 2 days a week: Where do they have to pay their social security contributions?

This situation has not yet been resolved and is part of the negotiations. We will update as we have more news. If there is no agreement, British citizens may be socially insured in Belgium and the UK.

A British employee lives in Belgium and also works in the Netherlands and Belgium: Does the European Social Security Regulation still apply to them?

Yes, this regulation also applies to nationals of non-member countries, including British citizens. You can also apply these European rules to the employment situation of the British employee.

For Belgian Citizens to the United Kingdom

Does a Belgian travelling to the United Kingdom need a visa to work there?

In certain cases, they do not need a visa to travel to the United Kingdom for professional reasons. For example, if they attend meetings or negotiate contracts. In other cases, visas are required regardless of the duration of work in the United Kingdom.

An employee lives and only works in the United Kingdom for a British employer: What do I need to do?

The employee must apply for a specific visa based on points. Only employees who can demonstrate sufficient points may still enter the United Kingdom. The British Government allocates points based on the skills, qualification and income of Belgians. The employee must score at least 70 points to be able to work in the United Kingdom. This will be the case, for example, if they:

• Have already received a job offer from a British employer (20 points).
• Are highly qualified (20 points).
• Have a minimum annual salary of currently £25,600 (20 points).
• Can speak English (10 points).

In addition, the British employer must act as a sponsor.

An employee only works and lives in the United Kingdom: What do I need to do?

They must have a visa. In order to obtain a visa, they must have a recognised British company as a sponsor. If there is no recognised British company, it will be difficult to employ a Belgian in the United Kingdom. A Belgian company should have a British branch or establishment on British territory.

I am temporarily sending my employee to our United Kingdom sister company to carry out an assignment: What needs to be done?

The employee will apply for an Intra-company transfer visa and the company will act as a sponsor. Unless the employee earns £73,900 or more per year and working for you for at least 12 months.

I am seconding my employee temporarily (100% employment) to the United Kingdom: Will they continue to be covered by Belgian social security?

The situation has not yet been resolved and is part of the negotiations. If there is no agreement, you can second the employee to the UK under Belgian social security for six months. The six-month period may be extended once for a further six months. If they stay for longer, the situation must be assessed further.

My employee works in Belgium 3 days a week and in the United Kingdom for 2 days a week: Where do they have to pay their social security contributions?

The situation has not yet been resolved and is part of the negotiations. If there is no agreement, Belgian citizens run the risk of being socially insured in Belgium and the United Kingdom.

I am sending an employee to our British branch whose secondment will last a number of years and they do not want to lose their Belgian social security: What are their options?

If covered under British social security is not sufficient for the employee, the employee can still join the Overseas Social Security scheme.

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BRITCHAM SUPPORT
Here at the British Chamber of Commerce, we will continue to update you with the necessary information to help all our members to succeed. We are all in this together, and with the right plans in place, consumer confidence can be restored. BritCham offers support, guidance and specialised coverage for both Brexit and COVID-19, including webinars, workshops and events that will give your firm the tools it needs to navigate through this challenging period. Click here to register: https://www.britishchamber.be/upcoming-events

COVID-19 Restrictions Update: Beligum & UK

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UK

As a wave of infections sweeps back over Europe, many of its countries are forced to reintroduce restrictions on work, leisure and education.

England is set to endure a month of restrictions, beginning Thursday 5th November until Wednesday 2nd December, similar to European countries such as France and Germany that also announced national restrictions in response to a surge in infections. This comes as a result of revised health projections that reflect stark warnings of hospital beds filling rapidly and deaths expected to increase.

Across the United Kingdom, Northern Ireland, Scotland and Wales are following their own restrictions. Northern Ireland has extended its school break for an additional week (totalling two weeks) and bars and restaurants are closed for four weeks. Wales has been following a ‘fire-break lockdown’ which is due to end today. People will be able to form household bubbles again and meet in pubs, bars, cafes and restaurants when Wales’ restrictions end.

Scotlands measures are in effect from today and include a 5-tiered system. Each borough has currently been graded between levels 1-3, with level 3 areas including Glasgow and Edinburgh. As a result, over half of Scotlands population is placed in tier 3 which means alcohol will not be permitted to be sold indoors or outdoors in hospitality, all hospitality settings are required to close by 6pm and people advised on not leaving their local area.

In England, all non-essential shops such as restaurants, gyms, places of worship, entertainment and beauty facilities will all have to close on Thursday for one month. People will be told explicitly to stay at home with the exception of work which cannot be done from home, outdoor exercise, essential shopping and education. People will be allowed to meet one other person from another household outside in a public place but not in their homes or gardens. Conversely to Belgian rules, schools in England will remain open.

The United Kingdom reports 18,950 new cases in 24h with a total of 1,053,864 cases since the epidemic broke out. This Monday November 2, 2020, 136 deaths in 24h, leading to a total of 46,853 deaths have been reported. England is about to go back into lockdown until December 1, and other European countries are making always stricter measures to try and stop the new Covid-19 rise. 

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BELGIUM

Belgium went into a second ‘reinforced’ lockdown on Monday 2^nd November, due to continue to the 13^th of December at the very least. Like in England, half term holidays have been extended til the 15^th November. Restrictions vary between the Brussels-Capital, Flemish and Walloon regions. Curfews and mask regulations differ as follows: In the Brussels-Capital Region, there is a curfew from 10:00 PM to 6:00 AM and a mask must be worn at all times. For Flanders, the curfew is midnight to 5:00 AM and a mask but be worn on public transport, in busy places, and on streets where local authorities made it mandatory. Lastly for Wallonia, the curfew is from 10:00 PM to 6:00 AM and a mask must be worn on public transport, in busy places, and on streets where local authorities made it mandatory.

Shops deemed non-essential have closed, and social gatherings outlawed. Restaurants, bars and cafes are closed, with takeaway running until 10pm. All higher education will now be online, and teleworking is mandatory unless it is not possible.  

Belgium has the highest rate of coronavirus infections in Europe. The country has been struggling to come up with a unified and coordinated approach to the pandemic, and has been juggling the economic interests of the north of the country with the situation in southern Wallonia, the worst-hit region.

Belgium reports – as of November 2 – 11,789 new cases have been reported in 24 hours taking it up to a total of 441,018 cases, as hospitalisations are peaking like for the first wave. There have been 108 deaths in 24 hours, taking it to a total of 11,737 deaths. Belgium is following France and is placed back into lockdown stating for a month, from Monday November 2 to December 13, with assessment on December 1.

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Here at the British Chamber of Commerce, we will continue to update you with the necessary information to help all our members to succeed. We are all in this together, and with the right plans in place, consumer confidence can be restored. BritCham offers support, guidance and specialised coverage for both Brexit and COVID-19, including webinars, workshops and events that will give your firm the tools it needs to navigate through this challenging period.

See our website here for more details on how we can help you: https://www.britishchamber.be/