Theresa May`s government has proposed that the bill could be used to ensure that the government regularly provides Parliament with additional financial settlements, including additional fees to be paid in the future. Such control agreements are not included in the bill. This does not necessarily mean that Parliament will not be aware of the payments. The Ministry of Finance currently provides Parliament with information on the contributions and revenues of the United Kingdom as a Member State in recent years, without the law requiring it. Financial liquidation is currently estimated to cost the UK about $30 billion. Only payments resulting directly from financial equalization are authorized by the bill. It does not cover payments related to future agreements between the UK and the EU. The EUROPEAN VAT Directive continues to apply to products supplied by the United Kingdom to an EU Member State and, conversely, when shipping or transport began before the transition period and subsequently ended. The VAT directive`s duties and obligations are valid up to five years after the end of the transition period for all transactions that began before the end of the transitional period. VAT refund applications paid in a Member State by a UK tax member (or by a person in the UK) must be filed by 31 March 2021. Any changes to VAT returns relating to cross-border transactions must be submitted by 31 December 2021. The Council`s regulation on administrative cooperation and the fight against VAT fraud will continue to apply to the tax authorities of the Member States and the United Kingdom for a period of four years for transactions carried out before the end of the transition period. Subject to these transitional provisions, the United Kingdom will almost certainly retain a VAT system, possibly in the form of a turnover tax or a goods and services tax.
The proposed rules for Northern Ireland mean that while Northern Ireland will be part of the UK`s customs and VAT territory, the EU VAT rules on goods will continue to apply in Northern Ireland (not the rest of the UK) so that Northern Ireland remains a part of the internal market and does not need a firm border with the Republic. That is why the UK will apply EU VAT directives on Northern Ireland products, collecting VAT and paying them to the EU. Services are subject to the UK`s VAT system (as long as it departs from the EU). The practical impact of the agreement on The UK`s financial institutions can be summed up as follows: the UK`s withdrawal from the European Union is an important and complex process that has a considerable impact on how we take responsibility. Many parts of the Bank have worked closely together to assess the potential impact of an EU exit on our political objectives of monetary and financial stability. The political statement refers to the autonomy of regulation and decision-making of each bloc and its ability to make equivalency decisions in its own interest. From a British point of view, the latter reference to autonomy is less welcome when it comes to achieving considerable market access in equivalence. If one does not read about the objective of going beyond WTO obligations, there is no explicit reference to an extension of equivalence beyond the existing patch work. In this context, Steven Maijoor, President of the European Financial Markets Authority (ESMA), has already called for a comprehensive and harmonised European regime for trading platforms in third countries. The policy statement also refers to the fact that both parties begin to assess equivalence to each other as soon as possible after the withdrawal, so that they can be completed before the end of the second quarter of 2020. In order to allay the UNITED Kingdom`s concerns about the sudden withdrawal of equivalence, the documents promise “transparency and appropriate consultation in the adoption, suspension and R