Thursday, October 12, 2017
On October 9, 2017, the UK Government released a number of white papers, setting out how it will manage its trade and customs policies, including its customs, value-added tax, and excise regimes, when the UK leaves the European Union.
Its Customs Bill White Paper, which specifically looks at cross-border tax arrangements, says the UK's new legislation will, as far as possible, replicate the effect of existing EU customs laws.
To prepare for the possibility that a deal won't be concluded with the EU on such issues, the paper covers provisions for the implementation of customs, VAT, and excise regimes separate from the EU, and sets out the steps the Government would take to minimize disruption for businesses and travelers.
The Customs Bill will give the UK the power to charge customs duty on goods; define how goods will be classified, set and vary the rates of customs duty and any quotas; amend the VAT and excise regimes so that they can function effectively post-exit; set out the rules governing how HMRC will collect and enforce the taxes and duties owed; and implement tax-related elements of the UK's future trade policy.
"This White Paper sets out our plan to keep trade with the EU as frictionless as possible, and reaffirms the government's commitment to deliver a smooth transition," said Chancellor of the Exchequer Philip Hammond.