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A brief & simple thread on a long & complicated #Taxation Bill
This sees aspects of NI/IRL #Protocol brought into effect
TL;DR The Irish Sea is now a #customs border.
What this means in practice depends on UK-EU deal + details of y'day's JC agmt
https://bills.parliament.uk/bills/2811
1/8
This sees aspects of NI/IRL #Protocol brought into effect
TL;DR The Irish Sea is now a #customs border.
What this means in practice depends on UK-EU deal + details of y'day's JC agmt
https://bills.parliament.uk/bills/2811
1/8
#TaxationBill is infamous:
To push agmt on the #Protocol, UKG threatened to use this Bill to breach it [I'm aware that sounds nonsensical]
What UKG wd hv broken was the need for *joint* UK-EU decisions on how to implement the Protocol.
We're told they have these ready now.
2/8
To push agmt on the #Protocol, UKG threatened to use this Bill to breach it [I'm aware that sounds nonsensical]
What UKG wd hv broken was the need for *joint* UK-EU decisions on how to implement the Protocol.
We're told they have these ready now.
2/8
First, one ‘boon’ for NI from the #Protocol & confirmed in this #Bill, UK-EU Deal or No Deal:
EU goods entering NI will be treated as domestic goods & will not be charged import duty.
VAT/excise rules for mvnts btn NI & EU will continue to apply, ‘modified as necessary’.
3/8
EU goods entering NI will be treated as domestic goods & will not be charged import duty.
VAT/excise rules for mvnts btn NI & EU will continue to apply, ‘modified as necessary’.
3/8
3 main issues relating to customs/taxes arising from the #Protocol & covered in this #Bill:
1. Duties.
So, if applicable, EU tariff will be paid on GB & RoW goods entering the EU or 'at risk' of doing so via NI.
The Treasury will make regulations to bring this into effect.
4/8
1. Duties.
So, if applicable, EU tariff will be paid on GB & RoW goods entering the EU or 'at risk' of doing so via NI.
The Treasury will make regulations to bring this into effect.
4/8
Clause 1 of the Bill will change UK Taxation (Cross-border Trade) Act 2018 to allow Treasury to regulate for, e.g., imposing checks, controls or admin processes for goods GB to NI 
but also for modifying provisions of 
Union customs legislation that apply to goods ‘at risk’
5/8
but also for modifying provisions of Union customs legislation that apply to goods ‘at risk’5/8
2. As we've long known, goods entering GB from NI will be subject to #VAT as though they were imports.
Goods entering NI from GB will also be subject to VAT as though they were imports.
Excise duty can be charged in certain circs. on GB-NI goods.
As summed up in explainer:
6/8
Goods entering NI from GB will also be subject to VAT as though they were imports.
Excise duty can be charged in certain circs. on GB-NI goods.
As summed up in explainer:
6/8
3. On goods moving NI to GB, the UK tariff will be imposed on those that are non-qualifying goods, i.e. not NI.
The definition of what is an NI qualifying good needs to be tightened up next year.
Then the Q of how to distinguish btn NI & non-NI goods entering GB arises...
7/8
The definition of what is an NI qualifying good needs to be tightened up next year.
Then the Q of how to distinguish btn NI & non-NI goods entering GB arises...
7/8
