UK exit from EU VAT delayed?

Thu 3rd Nov 2016

On 3 November, the UK High Court ruled (against the UK government) that the UK Parliament would vote on an Act of Parliament on invoking Article 50 of the Lisbon Treaty – which triggers the start of 2-year EU exit talks.  This is likely to delay the provisional UK ‘Brexit’ date of April 2019 – and therefore the UK leaving the EU VAT regime also.

The UK government as already indicated that it will lodge an appeal with the Supreme Court, the highest court of appeal in the UK. This may happen on 7 December 2016.

The UK will remain subject to the requirements of the EU VAT Directive, and VAT rulings from the European Court of Justice, until it exits the European Union.



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