- The document is a proposal for a Council Implementing Decision to amend Implementing Decision (EU) 2021/512.
- This amendment would authorize the United Kingdom to apply a special measure in Northern Ireland, deviating from Articles 16 and 168 of Directive 2006/112/EC on the common system of value added tax (VAT).
- The special measure is related to an extension of the authorization.
- The United Kingdom left the European Union (EU) on 31 January 2020 and is now considered a third country to the EU.
- From 1 January 2021, EU VAT legislation no longer applies to the United Kingdom.
- However, Northern Ireland remains under EU VAT legislation regarding goods to avoid a hard border between Ireland and Northern Ireland.
- For services, Northern Ireland is treated as a third country, along with the rest of the United Kingdom.
- This leads to a dual or mixed VAT system in Northern Ireland.
- The United Kingdom requested authorization to continue to apply a measure deviating from Articles 16 and 168 of the VAT Directive on 13 July 2023.
- The proposal aims to continue applying a special scheme on VAT in Northern Ireland, which provides for flat-rate measures in respect of non-deductible value added tax charged on fuel expenditure in company cars.
- The United Kingdom has requested to continue the application of the derogation from 1 January 2024 to 31 December 2026.
Source: eur-lex.europa.eu
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.
