The recent HM Government of Gibraltar briefing was a pivotal moment for the local business community. While negotiations continue, the session featuring the Chief Minister and the Attorney General provided much-needed clarity on the operational future of business in Gibraltar.
At Netgear Business, we believe that staying ahead of regulatory shifts is as vital as maintaining a robust IT infrastructure. Below, we have compiled the definitive Q&A guide for local business leaders, cutting through the noise to focus on the facts.
1. Hardware standards & infrastructure
Will the treaty ban the use of British 3-pin plugs?
No. This is one of the many “scare stories” that was firmly debunked. The Government confirmed that EU standards already recognise 3-pin plugs. You do not need to worry about replacing your office hardware or power leads.
Do all imported tech products now require CE marking?
Not necessarily. While products must meet EU-compliant safety standards, many items follow British Standards (BSI), which are recognised as equivalent. Furthermore, goods already in free circulation within the EU are presumed to be compliant.
What should I do about my existing inventory?
The Legacy Stock Declaration Form is being released immediately. While it is not mandatory, we strongly advise filling it in. As noted during the briefing, skipping this declaration may put your business “first in line” for future inspections.
2. The new financial landscape
What are the details of the new Transaction Tax?
The treaty introduces a transaction tax with a floor of 15% from day one, rising to 17% within three years. Zero-rated and reduced-rated lists have already been published for specific categories.
Can I reclaim tax on faulty goods returned abroad?
Yes. Refunds will be available for re-exported goods, ensuring that businesses are not penalised for returns or faulty hardware.
How will tourist tax refunds work for my retail operations?
Initially, refunds for non-EU tourists will only be available at Gibraltar Airport. While there is a push for EU-wide exit-point refunds (like Malaga or Madrid), there is no firm commitment on this yet.
3. Cross-border services & operations
We use Spanish contractors for our office maintenance. Is this changing?
Significantly. While delivering goods remains straightforward, any Spanish company providing services (such as installations, repairs, or building works) must be registered in Gibraltar for tax, social insurance, and employment compliance.
Netgear Insight: To ensure total compliance and avoid logistical delays, we recommend partnering with locally registered experts like Netgear Business for all your infrastructure needs.
Are there limits on online sales to the EU?
No. Unlike other regions, the €10,000 limit for online sales does not apply to Gibraltar. You may sell any volume online, provided VAT is paid at the consumer’s location.
4. Logistics and customs
Will I need a new EORI number?
The Government is currently negotiating a system where Gibraltar businesses may be automatically registered using their existing local customs numbers to minimise administrative friction.
What happens to my current customs paperwork?
Expect a shift toward a more digital, streamlined system. The old EX1 forms are likely to be replaced by the T2GI system. For those worried about cash flow, the Government is aiming for a 30-day grace period for tax payments on imports
What is still pending?
While much has been resolved, some details await the final legal drafting:
- The Import/Export Manual: A full procedural manual will be published once customs negotiations with Spain are concluded.
- Bonded Warehouses: New regimes for EU and non-EU origin goods are being negotiated, with updates expected shortly.
- Tourist Refunds: Initially, tax refunds will only be available at Gibraltar Airport. While the business community is pushing for exit-point refunds at places like Malaga or Madrid, no commitment has been made yet.
Future-proof your business with Netgear
As the “new normal” takes shape, ensuring your hardware and digital infrastructure meet the new standards is vital. Don’t leave your compliance—or your legacy stock—to chance.
Contact with Netgear Business today. Start your transition to the new treaty standards with total confidence thanks to our local expertise and fully compliant status on the Rock.