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When you run an eCommerce business, you have the advantage of having customers globally due to the nature of the internet. This means you may become aware of some laws of either country to ensure you trade correctly. As a UK business, naturally, you must comply with UK laws affecting eCommerce businesses. However, since the UK left the EU through Brexit, your eCommerce brand may need clarification about whether the EU law applies and what rules to comply with. This article will explain what your eCommerce business needs to know about EU law and trading in the EU.
What Does My eCommerce Business Need to Know About EU Law and Trading in the EU?
You need to understand some crucial points as an eCommerce business about EU law and your online brand trading in the EU. We take a look at some of these below.
EU Law and Brexit
Since the UK left the EU recently through Brexit, you are probably not alone in thinking that your eCommerce brand must no longer comply with the same laws. However, your online business must still comply with EU laws in force before Brexit. These remain in place in the UK as retained EU law.
The EU E-Commerce Directive
Despite EU law applying after Brexit, an EU law no longer applies to you as an eCommerce business. The EU E-Commerce Directive allowed you as a UK eCommerce business to trade with other EU countries simply because you comply with UK law, but this does not apply. Therefore, if your eCommerce brand wants to trade with EU countries now, you must understand the laws of the country you trade with.
Also, the Electronic Commerce (EC Directive) Regulations 2002 still apply to the UK. This means you must ensure you understand and comply with them.
Trading with EU Countries
When you trade with EU countries as an online brand, you are not allowed to treat your online customers differently just because they are in a different EU member state than the other. Therefore, you cannot offer them different terms. This is because the EU-wide geo-blocking rules continue to apply to your online brand.
When trading with EU countries, you must also know about the EU Imports One-Stop Shop. This started to apply in June 2021, which means you must register in one EU Member State for your VAT registration and payment. Here, you declare and make payment for any goods or services you sell to any of the EU Member States where they are above the threshold of 10,000 euros. There are also further rules for your eCommerce business as part of the EU Imports One-Stop Shop on VAT and the EU.
This guide sets out how to set up, finance and grow an online business in the UK.
When trading with customers in Northern Ireland from your eCommerce store, you must be aware that there are other laws you must comply with. These depend on the product you sell.
Key Takeaways
As an eCommerce business owner, you need to be aware of EU law and trading in the EU. Various laws do and do not apply, mainly since the UK left the EU through Brexit. This article has explained some of the information you need to know. For example, despite Brexit, most EU laws still apply to your eCommerce brand as retained EU law. However, the EU E-Commerce Directive does not apply, which means you now need to know and comply with the rules in other EU countries. Also, when trading with EU countries, you should know the EU Imports One-Stop Shop, which applies to VAT for our eCommerce brand. You should also ensure that when you trade with other EU member states, you do not discriminate against customers between member states.
If you need help understanding what your eCommerce business needs to know about EU law and trading in the EU, LegalVision’s experienced eCommerce lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. So call us today on 0808 196 8584 or visit our membership page.
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