Reporting tax schemes (MDR)

On 29 March 2017, the United Kingdom launched the procedure for withdrawal from the European Union (EU). As a result, Brexit was supposed to become a reality on 30 March 2019, but having been extended twice, the UK left the EU on 31 January 2020 as part of an agreement between the UK and the EU. Pursuant to the agreement, EU regulations apply in the UK until the end of 2020 (transition period).

The EU-UK free trade agreement is currently subject to negotiations. In the absence of the FTA, the UK will become a third country from 1 January 2021 without any preference whatsoever.

Regardless of the adopted scenario, Brexit will require the conducted business activity to be adapted to the new obligations and levies related to business contacts with the UK. EU and UK entrepreneurs should be prepared for the fact that the United Kingdom will become a third country in terms of customs

• trade in goods between the EU and the United Kingdom will be carried out on the same terms as trade with non-EU countries is currently held;
• application of customs procedures will become mandatory, which will include the need to submit customs declarations each time;
• the movement of goods from and to the United Kingdom will, in principle, involve the payment of import VAT and excise duty together with customs duties;
• rules on the place of VAT taxation of services and rules on VAT recovery will change;
• no customs preferences (in the absence of the free trade agreement between the EU and the UK) – reduced rates or no customs duty due to preferential origin (however, it will be necessary to confirm non-preferential origin);
• the EU combined nomenclature (CN) will no longer apply in the UK – the EU combined nomenclature will require reclassification under codes to be developed by the UK;
• the method of reporting movements of excise goods across the border of the United Kingdom and the EU will be significantly changed as a result of the necessity to perform customs clearance.

• After leaving the Community, from 1 January 2021 the United Kingdom will cease to be a party to European regulations coordinating social security systems;
• Until the end of the transition period, that is until 31 December 2020, the legislation applicable to persons posted from the UK to Poland and from Poland to the UK is determined on the basis of the existing rules. It is therefore possible to obtain the A1 certificate in the home country;
• After the transition period, it will no longer be possible to obtain the A1 certificate for newly posted employees. The law of the state where the work is performed will be the basis for determining the obligation to be subject to insurance.

UK citizens and their family members who have registered their stay in Poland and will continue to live in the territory of the Republic of Poland, should submit an application for the exchange of their documents for newly introduced residence permits by 31 December 2021 at the latest.

Those who stayed legally in Poland before 31 December 2020, but failed to submit applications for registration of the stay before the end of the transition period, should immediately apply to the competent voivodship office for registration of residence and request to have relevant documents issued immediately after 1 January 2021. During the procedure, it may be necessary to prove that the territory of the Republic of Poland was entered on 31 December 2020 at the latest.

If UK citizens or their family members enter the territory of Poland after 1 January 2021, they will be treated as third-country nationals. They will be entitled to travelling on a visa-free basis (up to 90 days in Schengen within a 180-day period), however, starting work will require a work permit. In addition, in order to legalize a stay for more than three months, a visa or a temporary residence permit will be required.