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UK Brexit EU VAT & Customs Union exit law


UK Brexit EU VAT & Customs Union exit law

In today’s UK Queen’s speech, when the government announces up and coming legislation, initial plans were included for a Bill to exit the EU VAT regime and Customs Union.

Later this summer, a Finance Bill and Customs Bill will be presented to parliament to modify the UK’s VAT regime to separate it from the EU customs legislation and VAT Directive.

Brexit Customs Bill

The bill will ensure:

  • the UK has a standalone UK customs regime on exit
  • flexibility to accommodate future trade agreements with the EU and others
  • changes can be made to the UK's VAT and excise regimes on exit from the EU, whatever the outcome of negotiations
  • the government can collect payments of customs duties, administer the customs regime and tackle duty evasion
  • control over the import and export of goods

Repeal Bill

There will be a wider Bill, 'Repeal Bill', which will consolidate all EU law into the UK law.

  • This measure will repeal the 1972 European Communities Act and convert EU law into UK law
  • The UK Parliament (and where appropriate, the devolved legislatures) will be free to make any future changes to its laws

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.