As a result of Brexit, from the 1st January 2021 there have been various changes which will affect our customers in Europe.
The most significant change sees VAT being charged by EU countries on goods imported from the UK.
As far as new locomotives are concerned, other than creating a modest amount of extra paperwork, sales are not significantly affected - indeed in some cases there will be savings. When shipping to Europe, we will invoice our new build parts and locomotives exclusive of VAT (20% in the UK). When the engine arrives at its destination, VAT will then be charged at the local rate (which, in the case of Germany, is 19% - so a Feldbahn 0-6-0 ends up around £125 cheaper over there than one sold in the UK).
Second-hand goods it's not such a good situation (at least if you live in Europe). Given that there is no recoverable VAT charged on second-hand goods, we don't (nor are allowed to) issue a VAT invoice for second-hand sales. However, from 1st January 2021, second-hand goods shipped into Europe will be subject to VAT at the local rate on the full price including shipping - so something like a 5 inch gauge locomotive costing £10,000 will have a further 20% VAT charged when imported.
Note that this only affects sales into Europe - sales to the UK and rest of the world are unaffected, the price you see is what you will pay (although some countries will charge import duty - typically much less than VAT, but check with your local authorities to get an exact figure).
Not something we voted for or can do a great deal about I'm afraid, however we will actively support lobbying for a change in this area - another part of the Brexit agreement that needed a bit of extra thinking about from both sides.