- HMRC has issued a policy paper and draft legislation regarding the interpretation of VAT and excise legislation in the UK.
- The legislation clarifies how VAT and excise law should be interpreted in light of changes made by the Retained EU Law (Revocation and Reform) Act 2023.
- The REUL Act ended the supremacy and special status of retained EU law in the UK.
- A “bespoke” approach is proposed for VAT and excise duty.
- The proposed legislation confirms that UK law cannot be quashed or disapplied on the basis of incompatibility with retained EU law.
- EU rights and principles will still have an effect on interpreting VAT and excise law.
- Draft legislation has been published for technical consultation, with submissions closing on 17 November 2023.
Source: taxscape.deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
