The government has published draft legislation in relation to retained EU law for VAT and excise ahead of potential inclusion in the next finance bill. The legislation clarifies how VAT and excise legislation should be interpreted following changes made by the Retained EU Law (Revocation and Reform) Act 2023 (REUL Act). An explanatory note has also been published.
The REUL Act ended the supremacy and special status afforded to retained EU law in the UK. In relation to VAT and excise, the draft legislation is intended to confirm that it will no longer be possible for any part of any UK Act of Parliament or subordinate legislation to be disapplied on the basis that it is incompatible with EU law.
The draft legislation should also ensure that the rule known as ‘the principle of consistent interpretation’ continues to apply. This means that UK VAT and excise legislation will continue to be interpreted as parliament intended.
The government is seeking views on whether the draft legislation achieves its intended effect, as set out above. Any responses or queries regarding this should be sent by email to email@example.com by 17 November 2023.
The Tax Faculty
ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
More from the Tax Faculty
Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.