BREXIT – What the deal means for new vehicles and services

As you know, on 24 December 2020 the UK Government established a trade and cooperation agreement with the European Union (EU), which came into force on 1 January 2021.

Like many other businesses, we are currently assessing what the deal may mean for our products and services. We would like to bring you up to speed on what we know at this point in time about two key points.


Zero tariff and the ‘Rules of Origin’ – what could they mean for pricing?

The Society of Motor Manufacturers and Traders (SMMT) expect that the majority of automotive products are now eligible for a zero tariff arrangement. However, within the new deal the ‘Rules of Origin’ arrangement means that in order to qualify for a zero tariff defined percentages of the new vehicle or product must be manufactured in the EU. This detail means that manufacturers are currently reviewing their products and may need to adjust their prices accordingly.

Due to the complexity of this, a grace period has been granted for proving origin during 2021 for non-electric vehicles. And, for electric vehicles and their batteries, a 6 year phase-in has been agreed.

As a result, we will be working closely with manufacturers during this period as the price of a new vehicle or product may change if it’s impacted by the rule.


What about European travel in a leased vehicle?

Now the UK is no longer part of the European Union, new rules apply when taking a vehicle to Europe. Before travelling:

  • Hired or leased vehicles need to obtain a VE103 certificate and letter of authority from Arval
  • Drivers need a ‘green card’ from their insurer, which for customers with Arval Total Care can be obtained by emailing:
  • If drivers have either a paper licence – i.e not a photo-card one – or one issued from a non-mainland UK authority, they may need an international driver permit from the Post Office, visit for information and explicit guidance on this matter
  • If the contract includes a guaranteed maintenance agreement, the breakdown cover provided will continue to include the EU
  • All GB vehicles need to display a GB and union flag on the number plate or a GB sticker on the rear of the vehicle

You can find out more on driving in Europe on and the AA.


Is there more information on the implications of the trade deal?

For more information and the most up to date position visit

As always, your Arval Business Manager is available to discuss any questions you may have. We will of course be in touch again with further updates as and when more information and detail becomes available.

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