The European Commission and the UK have published a joint statement outlining the progress that has been achieved on the terms of the draft Withdrawal Agreement since the version that was published on 19 March 2018.
Among the new areas of agreement are:
on VAT: The March 2018 draft of the Withdrawal Agreement provided that it had been agreed, in principle, that EU VAT rules would continue to apply to goods transported between the UK and EU before the end of the transition period (on 31 December 2020), or where the transport began before that date and ended after it, for a further five years from the end of the transition period. The negotiators have now agreed the text to implement this principle, and in addition have added longstop dates for claiming VAT refunds and adjusting VAT returns in relation to supplies between the UK and EU;
jurisdiction, recognition and enforcement of judicial decisions in respect of legal proceedings instituted before the end of the transition period;
existing EU arrangements for administrative cooperation in relation to VAT and excise duties are to continue for four years after the end of the transition period in relation to transactions and movements of goods taking place before the end of that period, or where a transport of goods began before that date and ended after it; and
the EU directive on Mutual Assistance for the Recovery of Claims (MARD) is to continue to apply for five years after the end of the transition period in relation to amounts that became due before that date.
Negotiations on the Withdrawal Agreement will continue over the coming weeks. The cover page of the statement reminds us that ‘nothing is agreed until everything is agreed’.
The European Commission and the UK have published a joint statement outlining the progress that has been achieved on the terms of the draft Withdrawal Agreement since the version that was published on 19 March 2018.
Among the new areas of agreement are:
on VAT: The March 2018 draft of the Withdrawal Agreement provided that it had been agreed, in principle, that EU VAT rules would continue to apply to goods transported between the UK and EU before the end of the transition period (on 31 December 2020), or where the transport began before that date and ended after it, for a further five years from the end of the transition period. The negotiators have now agreed the text to implement this principle, and in addition have added longstop dates for claiming VAT refunds and adjusting VAT returns in relation to supplies between the UK and EU;
jurisdiction, recognition and enforcement of judicial decisions in respect of legal proceedings instituted before the end of the transition period;
existing EU arrangements for administrative cooperation in relation to VAT and excise duties are to continue for four years after the end of the transition period in relation to transactions and movements of goods taking place before the end of that period, or where a transport of goods began before that date and ended after it; and
the EU directive on Mutual Assistance for the Recovery of Claims (MARD) is to continue to apply for five years after the end of the transition period in relation to amounts that became due before that date.
Negotiations on the Withdrawal Agreement will continue over the coming weeks. The cover page of the statement reminds us that ‘nothing is agreed until everything is agreed’.
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