From a business perspective the UK Government’s publication of its Bill to amend the Northern Ireland Protocol is a reminder that the current rules, however imperfect, are better than the uncertain alternative that is being proposed, according to Chartered Accountants Ireland.
Commenting on the UK’s proposals, Director of Public Policy Dr Brian Keegan said:
“No matter how flawed or imperfect the current customs and VAT arrangements are, at least there is some clarity regarding the treatment of goods travelling East/West and North/South. The new Bill that has been presented does not clearly set out any new arrangements to replace the current position. The Bill is unhelpful commercially. It will create further uncertainty for businesses particularly in Northern Ireland. In an era of interest rate and inflationary pressures, this is unacceptable.”
The Bill also proposes implementing VAT measures on a UK wide basis, giving UK Ministers the power to override the current application of EU VAT rules in Northern Ireland for goods.
Dr Keegan continued:
“If the measures set out in the Bill in relation to VAT are pursued, Northern Ireland could no longer be treated as if it were within the EU’s VAT area for goods. This will be detrimental for cross-border business because there would be additional VAT paperwork and payments on imports and exports”.