Extension to VAT Zero Rate on Women's Sanitary Products
In January 2024, the existing zero rate relief on women's sanitary products was extended to include reusable period underwear. The products must meet certain tests to qualify.
REULA – Finance Act 2024
Starting from 1 January 2024, the Interpretation of VAT and excise legislation is affected by the Retained EU Law (Revocation and Reform) Act 2023 (REULA). REULA ends the supremacy and special status afforded to retained EU law. It also confirms that UK legislation for VAT and excise can no longer be disapplied on the basis that it is incompatible with retained EU law.
Customs Duty Waiver Scheme
In January 2024 the Government increased the maximum value of duties that can be waived over three tax years for 'at-risk' goods moved into Northern Ireland from €275,000 (~£235,000), up from €200,000 (~£170,000).
First milestone of Windsor Framework introduced
From 31 January, goods moving directly to Great Britain from Ireland have been subject to the full customs regime.
Also from 31 January, there have been changes to the health certification needed for medium risk animal products, plants, plant products, and high-risk food and feed of non-animal origin from the EU.
These changes mark the first major milestone in the introduction of a full “green lane” between Great Britain and Northern Ireland.
Cross-Border Electronic Services of Payment (CESOP)
CESOP is a new EU regulation that took effect on 1 January 2024 and first returns are due by 30 April 2024. It mandates that Payment Service Providers (PSPs) report payment transactions where the payer is located within the EU and the payee is based in a second country (whether in or out of the EU). Read more in our article here.
Carbon Border Adjustment Mechanism (CBAM) in the EU and UK
For the period from 1 October 2023 to 31 December 2023, businesses importing into the EU must know and record the carbon footprint of their products. Quarterly reporting is required and the first reporting deadline fell due on 31 January 2024. Read our article on the new legislation here.
The Government has announced plans to introduce a UK CBAM from 1 January 2027. This levy will apply in certain circumstances to relevant goods imported in the aluminium, cement, ceramics, fertiliser, glass, hydrogen and iron and steel sectors.