Our AI-powered GFSB Brexit Information Centre lets you ask questions about the Gibraltar-UK-EU Brexit Treaty and negotiations, providing answers based solely on publicly available information. It’s handled over 750 questions so far and that number is rising by the day. Sources include official Government of Gibraltar press releases, transcripts of interviews and media appearances by HMGOG Ministers and officials, and reporting or statements made by HMGOG Ministers and officials in the press. We update it with all the information we have which makes it an invaluable resource when navigating future scenarios. To show you how it works, we typed in some of your top questions….

You are asking how imports from the UK to Gibraltar will function after the treaty comes into effect. Post-treaty, the customs procedures for importing goods from the UK to Gibraltar will reflect the new customs union arrangement established with the EU. Here are the key points regarding these processes:

1. Transit Documents: Goods imported from the UK will move under a specific transit regime. Transit documents will be issued by Gibraltar customs for goods moving to Gibraltar, and they must go through designated customs post procedures in the EU, such as La Linea or Algeciras.

2. Customs Duties: Customs duties will be applied at the EU designated customs posts according to the EU Common External Tariff. However, goods originating in the UK and imported to Gibraltar will not incur any customs duties as long as they are of UK origin.

3. Transaction Tax: While goods from the UK will not incur customs duties, they will be subject to a new transaction tax once they are placed on the market in Gibraltar. This tax will replace existing import duties and will be collected by Gibraltar customs at the point of entry into Gibraltar.

4. VAT and Compliance: Imported goods from the UK will not be subject to VAT; however, if they are to be sold in Gibraltar, they must meet EU compliance standards. Detailed guidance will be issued regarding the specific compliance requirements for various types of goods.

5. Documentation: The new transit regime will utilize both T1 and T1GI (for non-EU goods) forms for goods entering Gibraltar from the UK via EU customs posts.

6. Markets and Special Procedures: For goods entering Gibraltar, special procedures like bonded stores will allow for deferred payment of the transaction tax until the goods are released for sale in Gibraltar. In summary, imports from the UK to Gibraltar post-treaty will involve new transit procedures, compliance with EU standards, and the application of transaction tax on the importation of goods that are sold in Gibraltar.

You are asking about the tax rates applicable to goods imported from the EU into Gibraltar.

As of the entry into force of the new customs regime on April 10, 2026, goods imported from the EU will be subject to a transaction tax (TT) and excise duties (ED), where applicable. The TT will replace the previous import duties and will be levied when goods are imported into Gibraltar.

1. Transaction Tax (TT):

• The standard rate will start at 15% in the first year and will rise to 17% by the third year.
• The rate will never be lower than the lowest VAT rate in the EU.
• A reduced rate of 5% will apply to certain goods, and a super-reduced rate of 0% will apply to essential items such as foodstuffs and certain medical products.

1. Excise Duties (ED):

• Excise duties will apply specifically to alcohol, tobacco, and fuel, in accordance with EU minimum rates.

Additionally, if goods are imported and placed in special customs procedures (e.g., customs warehouses), the transaction tax will only be charged once the goods are released for sale in Gibraltar.

You can find further details on these new tax regulations through the relevant government links.

You are asking about the goods that qualify for the reduced transaction tax rate of 5%.

The reduced rate of transaction tax of 5% applies to specific categories of goods, which include:

1. Goods of a kind normally intended for use in agricultural production (excluding capital goods such as machinery or buildings).
2. Live equines.
3. Live plants and other floricultural products including bulbs, cotton, roots, cut flowers, and ornamental foliage.
4. Children’s clothing and footwear, as well as children’s car seats.
5. Bicycles, including electric bicycles.
6. Works of art, collectors’ items, and antiques listed in specific Annexes of the EU VAT Directive.
7. Tools and other equipment intended for use in rescue or first aid services when supplied to public bodies or non-profit-making organizations active in civil or community protection.

These categories are determined by the list provided in Annex III of the EU VAT Directive, which the transaction tax aligns with.

The question inquired about whether the Government will support small businesses during the transition.

Yes, the Government has indicated its commitment to support small businesses through the transition following the implementation of the UK–EU Treaty. The Minister for Business, the Hon Gemma Arias-Vasquez, expressed the importance of ensuring that the business community feels supported during this period. The Government has established the Business Transition Advisory Group, which will provide recommendations aimed at minimizing potential impacts on businesses and helping them take advantage of new economic opportunities.

Moreover, efforts will also include holding briefings for the wider business community to keep them informed and prepared for the implementation of the treaty. This focus on direct communication and support underscores the Government’s commitment to assisting businesses through the changes ahead.

Got more questions? Head over to our Brexit Information Centre now.

Disclaimer
Brexit information continues to evolve, and the data on which this tool relies will be updated from time to time. You should double-check any answer against the original source material. Please note that the answers provided are for general information only and do not constitute legal advice. Users should take care before relying on them. You can also check out our other Brexit resources here.