Taxation (Post-Transition Period) Bill introduced today
The government has today (8 December 2020) introduced the Taxation (Post-Transition Period) Bill. This implements key aspects of the Northern Ireland Protocol in UK legislation, providing legal clarity for how customs, VAT, and excise duty will be dealt with after the end of the transition period.
- Bill introduced giving practical effect to various aspects of the Northern Ireland Protocol
- the Bill will allow us to put in place decisions by the Joint Committee on goods ‘not at risk’ of entering the EU, ensuring they do not have to pay the EU tariff
- a significant element in ensuring we live up to our commitments to uphold the Belfast (Good Friday) Agreement
Financial Secretary to the Treasury Jesse Norman said:
This Bill delivers on the government’s commitment to upholding the Good Friday Agreement, ensuring trade can continue in line with the agreement reached in the Northern Ireland Protocol.
The Northern Ireland Protocol requires that the UK introduces a framework for charges for customs, VAT and excise after the end of the transition period on 31 December.
The Taxation Bill creates the legal framework for those charges, aiming to minimise the practical changes for traders to ensure the efficient flow of goods within the United Kingdom, and on the island of Ireland.
Customs charges will only apply to goods arriving in Northern Ireland - from both Great Britain and countries outside of the EU – if they are ‘at risk’ of moving into the EU. The Joint Committee will set out more information in coming days.
The Bill will also ensure that EU goods imported into Northern Ireland from Ireland are not subject to customs duties or processes. It will also ensure the UK’s customs regime applies for goods moving from Northern Ireland to Great Britain if those goods do not qualify for unfettered access.
This Bill also sets out the VAT and excise duty rules that will apply between Great Britain and Northern Ireland.
The EU-UK Joint statement made today sets out the agreement in principle regarding the implementation of the Northern Ireland Protocol. The Government is therefore not introducing the so-called notwithstanding provision into the Taxation Bill.