Category: Learn

New changes are happening all over the world — from adopting new business processes to nurturing social movements to adjusting to the global pandemic. And the much-talked-about Brexit deal is one of these major changes. Curious about what Brexit means for businesses in the UK and EU? In this article, we look at the different business-related areas that will feel the impacts of the new Brexit deal.

How is Brexit Affecting Business in the EU and UK

Companies and business owners across the EU and UK are worried about Brexit and business continuity. As the transition period comes to an end, many businesses in Britain and Europe are wondering, “how will Brexit affect my business?” From business travel to communication to new customs regulations, there are many ways the Brexit deal can impact your business processes. In this post, we discuss how Brexit will affect:

• Business Travel
• Working and Studying Abroad (Work Visas, Education, and Erasmus)
• Impact on Trade (Customs, Supply Chain, VAT Regime)
• Mobile Roaming and Calling Charges
• Online Services

Let’s get into the different ways that Brexit may affect businesses in the EU and United Kingdom.

1. Business Travel

One of the main areas that the new Brexit deal affects EU and UK companies is in regards to the new restrictions on business travel. Individuals traveling for work from the EU to the UK and vice versa have new regulations to keep in mind.

British travelers will face restrictions on their passports. For example, British travelers will need at least 6 months left on their passports to travel to the EU. While these travelers don’t need a visa to enter the EU, they will need travel authorization. At immigration, they may be questioned about the duration of their stay, returned bookings, financing plans, and so on. Conversely, national ID cards are no longer valid for European travelers entering Britain, except for particular cases. And EU travelers will need to go through customs checks at UK airports.

Other changes:

1. Additionally, duty-free shopping will continue. However, there will be new allowances for the quantity of goods you can bring back to the United Kingdom.
2. There is also a new set of rules and regulations to follow when driving abroad. UK licenses will no longer be recognized as the same as the EU. And British drivers driving in the EU may require an international driving permit.
3. The EU will lose access to professional service providers (doctors, veterinarians, engineers, architects, etc.) from the UK. These professions will not be automatically recognized in Europe. And UK professionals with these qualifications will have to jump through regulations to get recognized.
4. Financial services will also be affected. UK-registered and regulated banks have announced (and started making) plans to close accounts of citizens residing in the EU or EU economic area.

2. Working and Studying Abroad

With the new Brexit deal, working and studying abroad (between the UK and EU) has become more complicated. Since the Four Freedoms of the EU — freedom of movement of goods, capital, persons, and services — no longer apply to British citizens, they do not benefit from visa-less employment and education within the EU.

Work Visas

The UK will issue a new points-based immigration system that treats EU & non-EU citizens the same. With this new system, travelers from the EU, EEA, and Switzerland can travel to the UK for short trips without a visa. However, longer stays and employment will require an application under the new points-based system. As explained in TLDR News’ video on how Brexit will affect work visas, the points-based system requires applicants to accumulate a minimum of 70 points. Out of the 70 points, individuals applying must have a job offer (20 points), demonstrate a high skill level (20 points), and speak English (10 points) — these are mandatory. The remaining 20 points can be achieved through the other criteria as listed by the government.

Education and Erasmus

To study in any of the European countries, British citizens will require a visa from particular EU countries, if their courses run longer than 3 months. Additionally, they will no longer qualify for domestic fees when studying abroad. All of this makes going abroad for education more expensive.

Furthermore, British universities will no longer participate in the Erasmus program. This means that European students won’t be able to study temporarily in the UK through the program. And students who still want to pursue higher education in the UK will have to apply through the new points-based immigration system and deal with higher international fees.

3. Impact on Trade

While Britain was part of the EU, companies could buy and sell goods across EU borders without paying taxes. Additionally, there were no limits on the amount of items that could be traded. However, with the Brexit deal, a few changes come into effect:

Customs/Border Tariffs

Since exiting the EU Customs Union, Great Britain will longer enjoy the benefits of free trade, making the movement of goods across the EU and UK more difficult. Now, British importers and exporters (trading with Europe) are considered non-residents. Because of this, goods moving between the UK and EU now require customs declarations. However, these goods will not be subject to tariffs.

On the other hand, businesses that used to face competition from overseas (EU) companies will enjoy a competitive advantage. This is because UK customers will have to choose between expensive imports and cheaper domestic products.

Supply Chain

Businesses can expect delays in their supply chain, including shipping and deliveries, due to border checks and queues. It is expected that the “EU would immediately implement tough new checks on agri-food products, with no grace period.” This is not good news for perishable goods as they may get caught up in these checks and queues.

VAT Regime

UK will no longer be bound by the EU’s VAT regime. As a result, importers and customers receiving goods from the EU will be subject to VAT for imports. The British government might decide to change the system, including making new goods 0% VAT-rated. However, what exactly will happen in the UK related to the VAT regime is still not concretely decided.

4. Mobile Roaming and Calling Charges

Many are wondering if Brexit will bring roaming charges back to businesses and customers. More specifically, will Brexit mean that phone calls between the EU and UK are considered international?

While part of the EU, British phone carriers were subject to EU phone laws. Through these laws, people could call, text, and use data on the same terms in the United Kingdom and across Europe. In other words, they could use their data at no extra fees, even when within the EU. Unfortunately, these laws no longer apply to UK phone carriers. And carriers are not legally required to offer the same rates as they did before.

As of December 2020, Vodafone confirmed that they had no plans to bring back roaming charges. Other major operators — O2, EE, 3 — haven’t publicly confirmed that they will increase calling rates.

If roaming charges are brought back, businesses in and outside of Britain and the EU can use virtual phone numbers as an alternative. For example, an EU company can get a UK phone number to connect with local customers in the UK without worrying about roaming or international charges.

5. Online Services

Lastly, when within the EU, there was a legal guarantee that the UK would have access to online services. However, this guarantee is no longer valid. Individual providers will need to decide how to make adjustments and amend their provisions.

How Global Call Forwarding Can Help with Brexit

The Brexit deal has led to both victories and uncertainties for people of different sectors in the UK and EU societies. Global Call Forwarding can ease some of these concerns by providing businesses in the UK and EU with European virtual phone numbers to help transition more effectively. You can sign up for a virtual phone number or buy a toll-free UK number on our website. Or, speak with our global specialists at 1 (888) 908 6171 to get a better understanding of how we can support your business during this change.

Dealing with global customers is not always easy. Add to this, cultural differences, language barriers, and cultural nuances, and you have yourself a messy situation. However, you can prepare better so that you navigate these differences professionally and develop valuable relationships. Follow the appropriate international phone etiquette when conducting business interactions with international customers and clients.

What is Proper International Phone Etiquette?

When working with global customers and clients, you will have to have in-person, phone, and video conversations to move forward or close deals. Oftentimes, people are so used to doing business within their country or locally that they may be unaware of international business conventions.

International phone etiquette is the awareness of the differences and subtleties between various countries and regions and how to navigate these differences in order to communicate effectively.

How to Communicate Well with International Customers

So, what factors of international communication do you need to keep in mind when connecting with global customers? Here are some key elements to pay attention to:

1. Respect their Titles
When conducting business interactions, make sure you are aware of local conventions for addressing your attendees. Different countries have different cultural conventions for addressing one another. For example, in the US, using words such as “guys” may be common during business meetings. However, in countries like Japan and Germany, conventions are different: In Japan, it is polite to address someone by their first name, followed by “san.” On the other hand, in Germany, first names are not preferred. Instead, people are addressed by Herr/Frau followed by their last name. Being aware of these nuances can help you develop demonstrate respect and stronger relationships.

2. Listen Carefully and Actively
When dealing with international clients and business partners, a common challenge is understanding and interpreting accents. A second challenge is misunderstanding cultural references. To counter this issue, listen actively and carefully and when needed, ask for clarification. This is an important part of international phone etiquette. Furthermore, be clear in your own pronunciation and diction; speak slowly and clearly. If required, rephrase your sentence for better clarity and to avoid misunderstandings.

3. Don’t Use Slang
Avoid local and cultural slang, colloquialisms, or references as this may not work in an international setting. You will end up leaving your business partners or clients confused and they may see this as a sign of informality. In some cases, you may even offend some one. Awareness is required to identify and steer away from slang terms, phrases, and buzzwords.

4. Avoid Frustrations and Talking Down
Lastly, be careful when toeing the line of speaking clearly and dumbing down your words and sentences. You may run the risk of offending someone and sounding rude and patronizing. Be patient and focus on the common goal of communicating effectively.

Why is it Important to Practice Phone Etiquette?

Being aware of and practicing international phone etiquette can go a long way in securing essential deals and developing significant relationships. For many companies and clients, conducting business via phone and video conversations is a new shift.

In fact, some may still be apprehensive of closing deals without face-to-face interaction. If you do not show respect during phone conversations or are unaware of international business conventions, you may lose a valuable business relationship. And so, practicing phone etiquette can help you ease any discomfort and hesitancy.

The Do’s and Don’t of International Phone Etiquette

Below, we will look at the Do’s and Don’ts of international business phone etiquette for the following countries:

• Australia
• Mexico
• Brazil
• Russia
• China
• South Africa
• France
• Spain
• Germany
• UAE
• India
• UK
• Italy
• USA
• Japan

Invest in the Right Tools for International Communication

Global Call Forwarding can support your international communication efforts with our international toll free numbers. You can sign up online or speak with our global specialists by calling 1 (888) 908 6171.