UK-EU Draft Withdrawal Agreement Published

On March 19th, the UK published a first draft of a withdrawal agreement, which although not finalized, indicates that for value-added and excise taxes, much of the status-quo with the European Union (EU) will remain until January 1, 2021. 

Notably, the Draft Agreement states that the UK and the EU will agree to have the EU Directive on VAT (Council Directive 2006/112/EC) remain as the controlling doctrine for matters related to VAT, when goods are transported between the UK and the EU. This agreement would remain in effect during the transitional period, which would extend until December 31, 2020. Other provisions of the Draft Agreement address excise taxes, citizens' rights and customs procedures. The Draft Agreement has been published by the UK government here.  

Author

Sovos

Sovos is a global leader in tax compliance and business-to-government reporting software, safeguarding businesses from the burden and risk of compliance around the world. As governments go digital, businesses face increased risk and complexity. The Sovos Intelligent Compliance Cloud combines world-class regulatory analysis with a global cloud software platform to create an adaptable, connected and global compliance solution that keeps businesses ahead of the ever-changing regulatory environment. Sovos supports 4,500 companies, including half of the Fortune 500, and integrates with a wide variety of business applications. Based in Boston, Sovos has offices throughout North America, Latin America and Europe. For more information visit and follow us on LinkedIn and Twitter.
Share This Post