Given that the United Kingdom (UK) will almost certainly leave the European Union (EU) at the end of January 2020, this edition of TaxWatch looks at the Value Added Tax (VAT) and Customs measures included in the Withdrawal Agreement.
The Protocol on Northern Ireland in the Withdrawal Agreement aims to provide a permanent solution to preventing a hard border on the island of Ireland – it will apply indefinitely from the end of the transition period (expected to be 31 December 2020). It will apply regardless of the terms of a Free Trade Agreement (FTA) yet to be agreed between the UK and the EU – unless Northern Ireland’s Assembly choses to opt out of the Protocol. Our full commentary on the Brexit Withdrawal Agreement and FTAs can be viewed in a previous article which is available to view here.
In this article, Glenn Reynolds and Frankie Devlin, Partners in our indirect tax practice in Dublin and Belfast respectively, and Richard Cowley, Tax Director, discuss the key VAT and Customs elements of the Protocol on Northern Ireland.
Glenn, Frankie and Richard discuss the implications of the VAT and Customs measures for trade between: Northern Ireland and the Republic of Ireland, between Northern Ireland and Great Britain, between Northern Ireland and the other 26 EU Member States as well as between Northern Ireland and the rest of the world, i.e. excluding Ireland and Great Britain.