To ask the Chancellor of the Exchequer, what recent discussions he has had with the Secretary of State for foreign and Commonwealth Affairs on the effect of changes to VAT treatment of overseas goods from African businesses from 1 January 2021 on (a) trade and (b) development.
12 March 2021
The UK has used its freedom from EU rules to create a fairer and more robust tax system, ensuring a level playing field for the UK high street. The new rules comply with World Trade Organization rules with goods from EU and non-EU suppliers being treated the same for VAT purposes. These changes are consistent with the international direction of travel, with similar models being implemented by Australia, New Zealand and Norway, and soon to be introduced by the EU.
Tax is a matter reserved to the Chancellor of the Exchequer and is therefore not subject to the collective approval of Cabinet.