British prime minister Theresa May's government wants to push discussions with the EU to bring clarity to anxious businesses and investors AP / Alastair Grant
British prime minister Theresa May's government wants to push discussions with the EU to bring clarity to anxious businesses and investors AP / Alastair Grant
British prime minister Theresa May's government wants to push discussions with the EU to bring clarity to anxious businesses and investors AP / Alastair Grant
British prime minister Theresa May's government wants to push discussions with the EU to bring clarity to anxious businesses and investors AP / Alastair Grant

Britain to outline Brexit strategy positions in talks with EU


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Britain will issue a cluster of new papers this week to outline its strategy positions in divorce talks with the European Union, ranging from regulation of goods to data protection, the UK's Brexit department said on Sunday.

Prime Minister Theresa May's government wants to push discussions with the EU beyond a focus on settling divorce arrangements to its future relationship with the bloc to bring clarity to anxious businesses, citizens and investors.

Last week, Britain issued proposals for a future customs agreement with the EU and a solution for Northern Ireland to avoid a return of border posts with the Republic of Ireland which might inflame tensions.

Britain's Brexit department said on Sunday it would issue two formal position papers this week along with a batch of proposals for discussions on future relations ahead of the next round of negotiations scheduled for later this month.

"In the coming days we will demonstrate our thinking even further, with five new papers - all part of our work to drive the talks forward, and make sure we can show beyond doubt that we have made sufficient progress on withdrawal issues by October so that we can move on to discuss our future relationship," Britain's Brexit minister David Davis said in a statement.

In July, the EU's top Brexit negotiator, Michel Barnier, said talks on future relations had become less likely to start in October because of a lack of progress on issues such as how much Britain should pay to leave the EU, the future rights of British and EU citizens, and how to manage a land border in Ireland

EU officials said progress had been difficult because Britain had no position at all on many issues and that an already-tight timetable could be delayed ahead of the scheduled March 2019 exit.

The release of a swathe of papers this week underlines Britain's desire to counter that criticism.

One will be a technical paper dealing with services associated with the production, sale and distribution of goods, along with their operation and repair, which Britain's Brexit department said should form part of the exit negotiations.

"It's basically about ensuring that when we leave there isn't a situation where goods on the market that have been validated and checked, all of sudden we have a need for businesses to have to go through compliance checks," a spokesman said.

In another, the government will say it is important to establish a framework on confidentiality to ensure the current system for exchanging official documents is protected.

Further papers on the future relationship will be released outlining the UK's plans for civil judicial cooperation with the EU, dispute resolution in light of Britain's intention to end the European Court of Justice's jurisdiction over British matters, and on data protection.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer