Containers stacked on the Belfast harbour estate. Getty
Containers stacked on the Belfast harbour estate. Getty
Containers stacked on the Belfast harbour estate. Getty
Containers stacked on the Belfast harbour estate. Getty

UK and EU close to agreement on post-Brexit customs deal for Northern Ireland


Sunniva Rose
  • English
  • Arabic

Britain and the EU are edging closer to a customs deal that could help end post-Brexit wrangling over Northern Ireland, with Brussels also having made a key concession on the European Court of Justice's role.

The EU has accepted a plan that would avoid the need for routine checks on products going into Northern Ireland, The Times newspaper said on Tuesday.

The bloc also agreed that the ECJ could rule on Northern Ireland issues only if a case was referred by courts in the province, but its exact role has yet to be settled, it told The National.

There had been major disagreements over the role of the ECJ, which would act as an adjudicator in a trade dispute between the UK and the EU.

The UK wanted British courts to have oversight but Brussels said the ECJ was the only competent body to rule on the interpretation and application of EU laws under the protocol.

Both sides were also hammering out details of a veterinary checks deal, The Times said.

A British government source told Reuters that no agreement had yet been reached and discussions were continuing.

A UK government representative said its priority is to protect the Belfast, Good Friday Agreement, and to preserve political stability in Northern Ireland and the UK internal market.

Any solution on the agreement needs to address issues on ground in Northern Ireland.

"We are currently engaging in intensive scoping talks with the EU to find solutions to these problems," the representative said.

Three years after Britain formally left the EU, both sides have been discussing how to enforce post-Brexit arrangements on the largely open border between Northern Ireland — part of the UK — and EU member state Ireland.

After months of tension between London, Brussels, Belfast and Dublin, progress has recently been made in the dispute over the Northern Ireland Protocol.

The Times quoted a senior British government source as saying the parameters of an overall deal were in place and it was up to UK Prime Minister Rishi Sunak to decide whether to sign it off.

Talks on the protocol had collapsed in early 2022 but resumed when Mr Sunak took office in late October.

Officials on both sides reportedly hope for an agreement by April 10, which will be the 25th anniversary of the Good Friday Agreement that ended a long-running conflict in Northern Ireland.

Key developments

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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

 

 

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The biog

Year of birth: 1988

Place of birth: Baghdad

Education: PhD student and co-researcher at Greifswald University, Germany

Hobbies: Ping Pong, swimming, reading

 

 

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Name: Back to Games and Boardgame Space

Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)

Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)

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Industry: Back to Games (retail); Boardgame Space (wholesale and distribution) 

Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space  

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Updated: February 01, 2023, 10:41 AM