A legislative tangle

Gary Ashford considers the implications that the UK’s departure from the EU will have on its international tax rules

It feels like a lifetime ago since the UK left the EU at midnight on the 31 December 2020, having secured a free trade agreement. This followed four years of political discussion, several Parliaments, two prime ministers and what amounted to two withdrawal agreements.  

There is no doubt that Brexit has signifi cant implications on the UK international VAT rules. Prior to the UK’s exit, VAT was (and continues to be for the 27 member states remaining in the EU) 

a pan EU tax, administered nationally, by virtue of the VAT Directive. The details of the separation are compounded by the state of VAT in Northern Ireland and we propose to deal with this in a future article.