The European Commission published an updated Notice to Stakeholders dated 16 April 2020 on the withdrawal of the United Kingdom and EU rules in the field of value added tax (VAT) for goods.
Since 1 February 2020, the United Kingdom has withdrawn from the European Union and has become a ‘third country’. The Withdrawal Agreement provides for a transition period ending on 31 December 2020. Until that date, EU law in its entirety applies to and in the United Kingdom.
During the transition period, the EU and the United Kingdom will negotiate an agreement on a new partnership, providing notably for a free trade area. However, it is not certain whether such an agreement will be concluded and will enter into force at the end of the transition period. In any event, such an agreement would create a relationship which in terms of market access conditions will be very different from the United Kingdom’s participation in the internal market, in the EU Customs Union, and in the VAT and excise duty area.
Therefore, all interested parties, and especially economic operators, are reminded of the legal situation applicable as of the end of the transition period (Part A of the notice). This notice also explains certain relevant separation provisions of the Withdrawal Agreement (Part B of the notice), as well as the rules applicable to Northern Ireland as of the end of the transition period (Part C of the notice).
Source: europa.eu
