Withdrawal Agreement Facts

October 16th, 2021

by Andrew Verboncouer

It should be noted that under the agreement, the duration of the transition period can only be extended once until 31 December 2022 and the UK and the EU must decide whether such an extension will take place by 1 July 2020. In practice, the EU is unlikely to appeal if the UK asks for an extension, so the ball will be in the UK`s court on this front. The reception of the agreement in the House of Commons was from cold to hostile and the vote was delayed by more than a month. Prime Minister May won a no-confidence motion against her own party, but the EU refused to accept further changes. The WAB turns Boris Johnson`s withdrawal agreement, which is a draft international treaty, into British law and gives the government permission to ratify it. The UK government says the EU is threatening not to put the UK on the list. And because Northern Ireland will remain in the rules of the EU`s single market under the terms of the EU Withdrawal Agreement, but not the rest of the UK, this could mean that no food imports will be imported from the UK into Northern Ireland. The agreement also provides for a transitional period, which lasts until 31 December 2020 and can be extended once by mutual agreement. During the transition period, EU law will continue to apply to the UK (including participation in the European Economic Area, the Single Market and the Customs Union) and the UK will continue to contribute to the EU budget, but the UK will not be represented in EU decision-making bodies. The transition period will give businesses time to adjust to the new situation, and the UK and EU governments time to negotiate a new EU-UK trade deal.

[17] [18] The UK launched formal withdrawal negotiations by formally informing the European Council of its intention to leave the EU. The revised agreement contains fewer tax law obligations than the previous version. It states that the parties are committed to the principles of good governance in the field of taxation and the fight against harmful tax practices. However, there is no reference to the Code of Conduct on Corporate Taxation (which was included in the previous version). The political declaration states that the parties “intend to consider mutual recognition of trusted economic operator programmes, administrative cooperation in customs and VAT matters and mutual assistance, including in the recovery of tax and duty claims, and through the exchange of information to combat customs and VAT fraud and other illegal activities. n”. . .


Enjoy This Post? Share It!

Leave us a comment!