Greta is a CTA and senior VAT advisor in the tax advisory team of MFA. Greta joined the team recently bringing with her 30 years’ specialist experience ...Contact Greta Kemper
You will be aware that as a result of the referendum on UK membership of the EU on 23rd June 2016, the UK voted to leave by a bare majority of 51.9%. Consequently on March 29, 2017, the UK Government gave notice to the European Council under Article 50 of the Treaty on European Union (the TEU) of the UK's intention to leave the EU. Article 50 provides for a two year period for the withdrawal to take effect unless this is extended by unanimous agreement.
What this means is that the UK's European Communities Act 1972 (ECA), will need to be repealed - under what is now known as the "Great Repeal Bill". This will convert all existing EU-derived law into domestic law, allowing the UK to decide over time what laws it wishes to retain.
Also as the rules governing customs duties are mostly implemented in the UK via direct EU legislation, the existing UK legislation will be insufficient to establish a standalone customs regime. Leaving the EU will therefore mean that the UK will need to put in place new domestic legislation for Customs purposes. This is currently being designed under the working title the "Taxation (Cross-Border Trade) Bill".
None of the legislation under discussion presupposes any particular outcome from the negotiations with the EU and so far there is no clarity on how future trade and other relationships will operate. We will update you as soon as more information is available.
Whatever final form Brexit takes, Martyn Fiddler Aviation will still be able to advise all of our clients and contacts on EU VAT and Duty, and will continue to be able to provide optimal compliant solutions across the EU and UK.