Brexit centre

The decision of the UK people to leave the European Union is one of the most significant events to occur in the history of the EU. Because of our geographic, social and economic ties with the UK, Ireland will experience the greatest impact of this decision among EU countries. The land border makes the situation particularly onerous. Ireland currently operates a trade surplus with the UK and customs checks and controls are increasingly likely.

Chartered Accountants Ireland

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Brexit

This week, we look at the new customs arrangements for goods moving from Britain to Northern Ireland next year and who it applies to.  We also bring news of the UK government’s warning to medicine suppliers to start stockpiling medicines while the UK and Japan are hopeful a trade agreement can be reached very soon. Who should use the Trader Support Service?This week we bring you further details on who can use the Trader Support Service; the new system launched by the UK government to support customs arrangements for goods moving from Britain to Northern Ireland when the UK leaves the EU customs union on 31 December 2020.  From 1 January 2021, businesses who:move goods between Britain and Northern Ireland, or bring goods into Northern Ireland from outside the UK;act on behalf of someone to move goods between Britain and Northern Ireland, or bring goods into Northern Ireland from outside the UK;are based in Northern Ireland and receive goods from outside of Northern Ireland;send parcels between Britain and Northern Ireland, or bring parcels into Northern Ireland from outside the UK, using Royal Mail or an express operatorcan use the Trader Support Service.  The service, which is costing £355 million, will be free to use and will provide businesses with support and guidance on how to meet any new customs obligations. Businesses can also use the system to have customs declarations completed on their behalf.  Businesses that are interested in using the service should sign up for further information.   Government warning to stockpile medicines in case of no-dealWith a significant percentage of medical supplies entering the UK market from the EU, medicine suppliers in the UK have been strongly urged to hold additional stocks of medicines in the UK to buffer against any disruption Brexit might bring come 1 January 2021, when the transition period ends.In a letter to medicine suppliers published this week, officials in the Department of Health and Social Care said that while they recognise that global supply chains are under significant pressure because of Covid-19 they are “asking suppliers to put in place flexible mitigation and readiness plans in preparation for new border and customs procedures”.Medical suppliers have also been asked to confirm what their contingency plans are for the end of the transition period.  This call from the UK government comes amidst continued uncertainty as to what form the relationship between the UK and the EU will take come 1 January 2021.  The UK has said it will not extend the transition period beyond 31 December 2020 to reach an agreement with the EU. UK/ Japan trade deal in the makingThe UK and Japan are hopeful that the outline of a post Brexit trade deal can be reached between the two countries by the end of this month.  The UK government have said that such an agreement could increase the UK’s trade with Japan by about £15.2 billion in the long run and increase worker’s wages by £800 million. Textiles, agriculture, and the services industry are just some of the sectors set to benefit from the deal.  The UK would also like to secure agreement on the free flow of data between the countries to support new areas such as Artificial Intelligence. The UK estimate that reductions in tariffs on goods exported to Japan could be worth over £30 million each year in the long run.  Both sides are eager to put a formal agreement in place before the end of the year when the post-Brexit transition period expires.  Otherwise, trade between the two countries will revert to World Trade Organisation rules which could mean significant customs duties. For all Brexit updates, visit https://www.charteredaccountants.ie/knowledge-centre/brexit/home  

Aug 13, 2020
Brexit

The European Commission has proposed changes to the EU’s VAT rules, in preparation for the end of the transition period with the UK on 31 December 2020. The amendment to the VAT Directive introduces a special identification number for businesses in Northern Ireland, so that EU VAT provisions can be properly applied to goods, in line with the Protocol on Ireland / Northern Ireland.  Under the Protocol, EU VAT legislation will continue to apply to goods traded in Northern Ireland. This broadly means that goods sold and transported from Northern Ireland to the EU (and vice-versa) will be treated in the same way as cross-border supplies of goods within the EU.  This includes VAT exemptions and deductions. The provisions will not apply to supplies of services in Northern Ireland. UK VAT rules will apply after the transition period. Supplies of goods and services made elsewhere in the UK will also be subject to UK rules for VAT. For more information read the European Commission’s update.

Aug 10, 2020
Brexit

The UK government has released a collection of papers that sets out how HM Treasury intends to use the powers under the European Union (Withdrawal) Act 2018, to ensure that the UK will have a functioning financial services regulatory regime in all scenarios when the UK leaves the EU.  For all Brexit updates, visit www.charteredaccountants.ie/brexit

Aug 10, 2020