What the new Brexit deal means for the film industry
Note: This article is in a state of flux as we continue to analyse the 1,246-page treaty for keywords associated with the film industry.
On 24 December, the UK and European Union have agreed on a Brexit deal, four years and six months after the UK voted to Leave the European Union following a referendum. The full details of the treaty comprising 1,246 pages in total has been published on the morning of Boxing Day 2020.
Below are the key points from the treaty that are likely to impact the film industry:
Visiting EU countries as a tourist from the UK
All travellers to the EU countries will need to ensure their passports have at least 6 months left and be less than 10 years old, and arrange for appropriate travel insurance with healthcare cover. UK drivers who need to drive in the EU will require additional driving documents and a GB sticker on the back of their vehicle.
For travellers taking their pets to the EU, a Animal Health Certificate (AHC) will be required as the existing pet passport scheme is no longer valid from 1 January 2021. The government guidance recommends allowing a month to arrange the AHC and relevant vaccinations.
Also travellers are not allowed to take meat, milk or products containing them into EU countries. A phytosanitary certificate may be required to travel with certain plants and plant products.
Tourists from the UK will not need a visa for short trips to most EU countries and are allowed to stay for up to 90 days in any 180-day period. Different rules will apply when visiting Bulgaria, Croatia, Cyprus and Romania as visits to other EU countries will not count towards the 90-day total. Read the full guidance…
Visiting EU countries for business
Business travel, including activities such as travelling for meetings and conferences, providing services (even for charity), and touring art or music, is subject to entry requirements of the destination country and may need a visa or a work permit.
Those from the UK travelling to a EU country to earn money may be required to make social security contributions in both the UK as well the EU countries where they are working. Employers might have to pay for indemnity insurance for their employees travelling to the EU countries for work (for example: members of a film production crew). Indemnity insurance covers their employees if someone takes them to court because of a mistake they make at work whilst in the EU. In addition, employers must report on form P11D the total cost of the legal or insurance expenses for each employee travelling to the EU for business.
Click here to read the full guidance for this section.
Exporting goods out of the EU
Travellers from the UK may face restrictions in taking goods such as musical instruments, stage designs, make-up and film production equipment into or out of the EU.
Most EU countries have a limit on the value of goods citizens from UK can bring in duty free. If a traveller from the UK is taking goods to a EU country temporarily for business reasons and think they are likely to be over the duty free limit, they can get an ATA Carnet to avoid paying duty. This applies to publicity materials, recorded film and audio, work equipment like laptops, cameras or sound equipment and goods for educational, scientific or cultural purposes. However, different EU member countries have their own rules about what goods can be brought in with an ATA Carnet.
Items such as works of art and historical objects cannot be exported out of the UK without a UK Export Licence from the Arts Council.
Click here to read the full guidance for this section.
Selling digital services to EU countries
For digital service sales made on or after 1 January 2021, UK businesses will not be able to use the UK’s VAT Mini One Stop Shop (VAT MOSS) service to declare sales and pay VAT due in EU member states. Instead, businesses will have to register for either:
- VAT MOSS in any EU member state by the 10th day of the month following the first sale to an EU customer.
- VAT in each EU member state where the digital services are sold to consumers
Click here to read the full guidance for this section.
Also UK-based companies have been advised appoint a representative in each of the EU member states where they offer digital services to fulfil the legal requirements in that country.
The eCommerce Directive will no longer apply to the UK from 1 January 2021.
Ownership of companies in EU countries
UK businesses might face restrictions on owning or managing a company registered in an EEA country or Switzerland from 1 January 2021.
Companies should be prepared for:
- additional requirements on the nationality or residency of senior managers or directors
- limits on the amount of equity that can be held by non-nationals
UK companies and limited liability partnerships that have their central administration or principal place of business in certain EU member states may no longer have their limited liability recognised.
Click here to read the full guidance for this section.
Employing workers from outside the UK
Creative industry professionals including artists, entertainers and musicians who are entering the UK for short-term contracts/engagements for up to 12-months can apply for a visa under the “Creative” route. From 1 January 2021, anyone being recruited from outside the UK to work in an occupation in a creative industry route will need to:
- Have a confirmed job offer from a Home Office licensed sponsor
- Pay the immigration health surcharge
- Provide evidence of maintenance funds whilst living in the UK
Under this category, they are allowed to bring their dependants, do supplementary work (at the same level as primary employment or a job on the Shortage Occupation List), study up to 15 hours per week and also allowed to switch employers and immigration routes in the country.
The new rules will not apply to EEA or Swiss citizens already working in the UK. EEA and Swiss citizens living in the UK by 31 December 2020, and their family members, can apply to the EU Settlement Scheme. They have until 30 June 2021 to apply.
Creative industry professionals also have the option to come to the UK as “visitors”. The existing rules for visitors allow artists, entertainers and musicians to perform in the UK, including being paid for their participation in certain events.
Broadcasting licensed content outside the UK
Additional copyright permissions will be needed to broadcast licensed content outside the UK.
UK broadcasters may no longer benefit from the “country-of-origin principle” for broadcasts into the EEA from 1 January 2021 and might need to get additional right holder permissions covering the EEA states to which they broadcast. In the UK, the “country-of-origin principle” will continue to be applied to broadcasts from any country.
Read additional rules for broadcasters and providers of video on-demand services.
Most UK copyright works (such as books, films and music) will still be protected in the EU and the UK because of the UK’s participation in the international treaties on copyright.
Click here to read the changes to the copyright law after transition