Currently, the Single European Payment Area, also known as SEPA allows the facilitation of the euro payments in the most convenient way possible. The United Kingdom (UK) is currently part of the geographical scope of the SEPA schemes due to its EU membership.
On January 31, 2020, the UK formally left the European Union and entered into an 11-month transition period, agreed within the Withdrawal Agreement with the EU, which will run until 31 December 2020.
As of 1 January 2021 as no extension of the transition period was agreed, the UK is set to leave the single market and customs union, either with an EU-UK deal, negotiated during the transition period or without it (i.e. “no-deal” Brexit).
The UK will at that point maintain participation in the SEPA geographic scope, however, this important change will make the SCT rules applicable to transactions from/to non-jurisdictions also applicable to transactions with the UK.
Paylar has implemented all the required measures to ensure continued smooth processing of cross-border payments involving UK-based SEPA payment scheme participants after 31 December 2020.
As for our existing UK-based clients, Paylar shall continue to treat them as EEA-based clients, even after December 31, 2020. No need to change or update the existing agreements, unless new regulatory requirements shall arise in the future.
Paylar team wishes a Merry Christmas and a Happy New Year!