The Taxation (Cross-border Trade) Act 2018 received Royal Assent on 13 September. The Act allows the government to create a standalone customs regime when the UK leaves the EU and provides for amendment of existing VAT and excise legislation.
The government made 46 amendments at report stage in the House of Commons on 16 July, concerning the setting of import and export duty rates and imposition of anti-dumping duties. In addition, six non-government amendments were agreed, including four tabled by the ‘European Research Group’ of backbench Conservative MPs:
Section 54: Prohibition on collection of certain taxes or duties on behalf of territory without reciprocity: the new clause will prevent the UK collecting VAT, customs or excise duties on behalf of the EU, unless the EU also collects such duties due to the UK on a reciprocal basis;
Section 55: Single UK customs territory: the new clause will make it unlawful for UK to create separate customs territory for Northern Ireland;
Clause 31 sub-s (5): Territories forming part of a customs union with UK: the new sub-section provides for any arrangements involving import duty to be approved by an Act of Parliament in the event that a customs union is formed between UK and EU; and
Schedule 8 (VAT) para 14: this paragraph was removed, which would have inserted a new section into VATA 1994 allowing HMRC to make regulations for charging import VAT in the event of a customs union being formed under clause 31.
The Taxation (Cross-border Trade) Act 2018 received Royal Assent on 13 September. The Act allows the government to create a standalone customs regime when the UK leaves the EU and provides for amendment of existing VAT and excise legislation.
The government made 46 amendments at report stage in the House of Commons on 16 July, concerning the setting of import and export duty rates and imposition of anti-dumping duties. In addition, six non-government amendments were agreed, including four tabled by the ‘European Research Group’ of backbench Conservative MPs:
Section 54: Prohibition on collection of certain taxes or duties on behalf of territory without reciprocity: the new clause will prevent the UK collecting VAT, customs or excise duties on behalf of the EU, unless the EU also collects such duties due to the UK on a reciprocal basis;
Section 55: Single UK customs territory: the new clause will make it unlawful for UK to create separate customs territory for Northern Ireland;
Clause 31 sub-s (5): Territories forming part of a customs union with UK: the new sub-section provides for any arrangements involving import duty to be approved by an Act of Parliament in the event that a customs union is formed between UK and EU; and
Schedule 8 (VAT) para 14: this paragraph was removed, which would have inserted a new section into VATA 1994 allowing HMRC to make regulations for charging import VAT in the event of a customs union being formed under clause 31.
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