Leopold Traugott Profile picture
Apr 23, 2018 10 tweets 5 min read Twitter logo Read on Twitter
I did a quick explainer for @prospect_uk on how #Brexit may affect #VAT, both domestically and in relation to EU-UK trade. Quick thread on some of the key points: prospectmagazine.co.uk/economics-and-…
1/ The UK, like all other EU member states, currently is part of the common EU VAT area. While the EU does not prescribe exact VAT rates, it put in place certain guidelines, e.g. a minimum standard rate of 15%, or limits on granting of reduced rates and exemptions.
2/ Leaving the EU presumably means leaving its VAT area (Monaco currently only non-EU state that is a member). This would have a range of serious implications, both positive and negative.

(Though some trade experts expect EU would offer UK continued membership, if asked.)
3/ On most basic level, leaving would mean UK completely free in setting own VAT rates. There has been heavy campaigning to use this to offer exemptions or reduced rates on e.g. tampons or domestic fuel. (Though some of this may become possible also under revised EU rules).
4/ It would also add spice to devolution debate. @reformscotland already proposed devolving VAT powers to #Holyrood after Brexit. This would be impossible under EU rules, which stipulate need for universal rates across a member state's territory. reformscotland.com/2018/04/the-va…
5/ But these freedoms would come at a cost, particularly for businesses. Currently there is no VAT levied on intra-EU trade - once UK leaves EU VAT area however, businesses would be forced to pay upfront VAT on their EU imports. This would create serious cash flow & time burdens.
6/ Businesses would also need to register for VAT in EU states they trade with (both in goods & services), a burden esp for SMEs. Groups such as @the_brc have already come up with ideas to alleviate fallout, though gov still seems slow in taking this up parliament.uk/documents/comm…
7) VAT also touches upon currently most delicate question of Brexit negotiations: the Irish border. As HoC scrutiny committee warns, the need for VAT checks on border would make attaining invisible border on island of Ireland even more difficult. bbc.co.uk/news/uk-northe…
8/ As @adamfleming points out today, gov still undecided on how it wants to do this. As with most things Brexit, its a delicate trade-off between keeping trade as frictionless as possible and regaining full decision-making powers.
Much will also depend on wider post-Brexit relationship. Should UK end up staying in SM and CU, remaining in EU VAT area seems likely option. But should it leave both, keeping EU VAT rules in place seems rather unlikely. /ENDS prospectmagazine.co.uk/economics-and-…

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Leopold Traugott

Leopold Traugott Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @LeopoldTraugott

Sep 13, 2018
I wrote a piece on the recent rise of the German Green Party – while the far-right AfD makes the headlines, people should also take a closer look at what is happening on the other side of the debate.

For @LSEEuroppblog (also, short thread)
Now it’s true that, overall, AfD had bigger political impact than Greens on German political landscape over past years – not just bc of their electoral gains (see esp East Germany), but by shifting the overall debate and forcing other parties to adapt.
But there needs to be room for nuance in covering this. If you talk all the time about nativist/far-right AfD being on the rise, esp since last elections, you should also mention the simultaneous success of the liberal, cosmopolitan Green Party since.
Read 8 tweets
Aug 23, 2018
As the UK pores over the government's no-deal notices, let's have a look at how all of this is seen on the EU side.

Running thread (👇) on reactions & commentary from EU media, industry groups, politicians, etc.
German centre-left @SZ sees today's no-deal publications as partly “a threat to make the EU accommodate London in the [Brexit] negotiations.”

Writes that Theresa May uses "fear as a weapon", also against opponents within her own party.
Also Austrian daily @derStandardat writes that the UK government “has recognised that such a [no-deal] scenario can help her to exert pressure on the EU.”

Goes on to warn that “much would become more difficult for EU citizens” under a no-deal scenario. derstandard.at/2000085912487/…
Read 11 tweets
Jun 27, 2018
Some thoughts on the idea of establishing refugee “reception centres” / “disembarkation platforms” outside the EU's borders, which will be discussed at #EUCO later this week.

While the concept has some merits, its implementation is fraught with problems. [THREAD, 1/ ]
The idea, in short, is to create centres outside the EU (e.g. Northern Africa, Balkans), where refugees can lodge their asylum claims & have them assessed by authorities. If asylum is granted, they can then travel on into EU safely. 2/
There are some attractive aspects to this model. Deaths would be reduced as refugees would no longer need to cross the Mediterranean (>3.100 deaths last year) to claim asylum. Smuggling business would go down & threat to Schengen zone would be reduced. 3/
Read 15 tweets
Jun 15, 2018
Quick thread on what is happening in Germany right now, where Merkel’s conservative bloc of CDU and CSU is in open conflict over migration policy. #CDUCSU 1/
It is no news that Merkel’s CDU and her Bavarian CSU-allies are divided over migration - this has been the case since at least 2015. Merkel’s desire for a liberal, multilateral approach doesn’t chime well with the CSU’s desire to pull an Orban (or at least Kurz) 2/
But now CSU has upped the ante & basically demands that asylum seekers should be sent back at the German border. Merkel fears the chain-reaction this may trigger within the EU (among other reservations). She wants more time to find EU-wide solution to reduce numbers. 3/
Read 11 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!


0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy


3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!