Brexit mitigations by Schultz IT Solutions

Wether we like it or not, we are forced to mitigate whatever impacts the UK's decision to leave the European Union causes for us. As a substantial number of customers from the UK use our products and services, and we are cooperating with organisations and companies based in the UK, we could not afford to sit back and wait for things to just happen...

We have been informed by UK HMRC that we would need to register for UK VAT handling as soon as we sell any goods or services to the UK. There is no VAT  threshold for businesses based outside the UK. This does indeed create additional workload and costs for us, which are not covered within our calculated prices. So we were forced to make the decision wether we still can offer our products and services in the UK.

Luckily (if anything can be considered „lucky“ around Brexit), we faced a similar situation (major changes in VAT handling for foreign businesses) with our customers in Switzerland in January 2018, and could establish a legally valid workaround, which we now can „extend“ to the United Kingdom, but excluding Northern Ireland:

Since january 1st, 2021 our customers from the UK (more specific GB) are no longer able to buy our goods and services directly from our own website. Instead they will be forwarded to our „digital sales partner“ www.Digistore24.com, who will be fulfilling the transaction (including the submission of invoices and VAT handling). In this scenario, we can limit the price raise for our goods and services to about 25 per cent of the net value. This will not apply to our customers in Northern Ireland, as the "NI Protocol" of the withdrawal agreement protects them from most of the Brexit consequences.

Downloading and support for our products will of course still be available directly from us.

We indeed very much regret this whole development, but of course we will be available for our customers in the UK regardless of any political decisions!

Yours faithfully,

Ruediger Schultz

and the team at Schultz IT Solutions