Key Facts

• The transition period will end in three weeks.
• VAT in Northern Ireland will be subject to EU principal VAT directive with ECJ as judicial body.
• EU officials are expected for enforcing legal arrangements, but checks will be conducted by HMRC inspectors.
• 'Notwithstanding' clauses have been agreed to be removed from the Bill.
• The Government’s Command Paper on implementing the protocol was published in May.
• The Bill ensures that EU goods moving into Northern Ireland remain free from customs duties or processes.
• Anti-avoidance rules prevent goods from being rerouted through Northern Ireland to avoid UK customs duties and obligations.
• VAT accounting treatment for goods moving between Great Britain and Northern Ireland will be as close as possible to the current approach.
• Bill amends current legislation for excise duty on goods moved from Great Britain to Northern Ireland.
• VAT collection will be moved away from borders involving online marketplace operators in the sale of imported goods.
• VAT relief on low-value items will be removed to level the playing field for UK businesses.
• Duty rate on aviation gasoline will increase by 0.5p per litre to 38.2p a litre starting January 1, 2021.
• HMRC gains tools to prevent insurance premium tax evasion from overseas insurers regardless of EU status.
• The Government published an 116-page Bill setting out tax and customs rules with less than 24 hours' notice.
• Businesses and individuals do not have sufficient information to prepare due to pending regulations.
• £80 million has been spent on recruiting customs agents, but the number of recruits is unspecified.
• Overall, £4.4 billion has been spent by the Government on Brexit preparations.
• £4.4 billion has been spent on preparedness for Brexit.
• 43% of Food and Drink Federation members who supply Northern Ireland will not do so in the first three months of next year.
• Up to 40% of UK’s EU-related financial activity could be lost in a worst-case scenario.
• The 'notwithstanding' provisions in the UKIM Bill have not yet been removed.
• Amendments will be tabled at Report stage next week to reinsert these provisions if necessary.
• The European Scrutiny Committee has prepared a report on state aid reform and its implications for the UK.
• The committee's report covers infringement proceedings, state aid commitments in EU-UK trade agreements, and Article 10 of the protocol on Ireland and Northern Ireland.
• The Bill was introduced less than 24 hours before its debate.
• The proposal will affect Northern Ireland residents and businesses.
• Changes to regulations will be made under the negative procedure.
• There is uncertainty regarding 'at-risk' goods for movement between the EU and UK.
• The trusted trader scheme is subject to review in three and a half years.
• The UK Government is accused of incompetence in handling Brexit issues.
• Paragraph 12 of schedule 1 will amend the Isle of Man Act 1979.
• Part 6 of new schedule 9ZB to the Value Added Tax Act 1994 relates to the Isle of Man.
• The legislation stems from negotiations under the previous Prime Minister regarding the Northern Ireland protocol.
• The MP had reservations about the current Government's version of the withdrawal agreement due to concerns over the EU’s intentions.
• There is an electronic border system for VAT and excise, which needs detailed programming to handle competing jurisdictions.
• The MP represents Chesterfield, which voted remain but has many Brexit-supporting constituents.
• Northern Ireland's businesses are facing significant administrative impacts due to impending changes.
• There is no serious economic or fiscal impact assessment included in the Bill.
• The Bill aims to ensure continuity and fairness for trading businesses after Brexit.
• Low-value consignment relief (LVCR) is removed from non-UK sellers, affecting imports under £135.
• Online marketplaces must now account for VAT.
• The Bill introduces administrative and procedural VAT changes.
• It aims to tackle non-compliance and support high streets competing with online sales.
• Cates mentions that VAT is due from online sales by companies importing goods into the UK.
• The Joint Committee has found a pragmatic way to interpret and enforce the Northern Irish protocol.
• Clauses 2, 3, and 4 of the Bill deal with customs duties and VAT collection for goods from Northern Ireland.
• Clause 7 proposes shifting VAT collection responsibilities to overseas sellers or online marketplaces facilitating sales.
• VAT collection is easier than other taxes and harder to avoid.
• The Bill closes a loophole and focuses on online marketplaces, expected to bring additional revenue for the Exchequer.
• A figure of £135 applies to changes in Northern Ireland due to Brexit provisions.
• UK providers must charge VAT on goods above £135 while overseas sellers may not, creating a loophole.
• 10% of England’s exports are to other parts of the UK, with Northern Ireland external purchases from Great Britain at around £14 billion.
• The Bill streamlines 6,000 tariff lines and removes tariffs on some £30 billion worth of imports entering supply chains.
• Schedule 3 ensures a level playing field for high street retailers.
• The Bill sets out a new customs regime for goods moving between Northern Ireland and the rest of the UK.
• Businesses will be subject to a more monitored, differently taxed, and significantly more bureaucratic basis than before.
• There are only 22 days left until the end of the transition period.
• The Taxation (Post-transition Period) Bill contains six measures.
• Three measures relate to implementation of the Northern Ireland protocol.
• Low-value consignment relief is being removed to end widespread abuse and raise £300 million a year over five years, totaling £1.6 billion over the scorecard period.
• Over 18,000 businesses have signed up for support from the trader support service since September.
• The negotiations are ongoing.
• Schedule 3 deals with imports to the UK, not exports.
• VAT is already charged on supplies sold by a GB business to an NI customer.