On 13 July 2017, the Government published the European Union (Withdrawal) Bill. The proposed legislation seeks to prevent future EU law becoming part of domestic law and convert existing EU law, applicable in the EU the day before the UK exits the EU, into domestic law.
At present, UK domestic legislation providing for VAT is derived from EU law and legislative bodies must apply VAT according to European directives, principles and rulings from the European Court of Justice (ECJ). After the UK leaves the EU, the Government will be responsible for the UK’s VAT policies.
Clauses 4 to 6 and Schedule 1 of the Bill provide a helpful indication of how general principles and ECJ case law will be applied in the UK post Brexit.
A copy of the European Union (Withdrawal) Bill is available to view here.