New Scotland, New EU VAT Rules

A new Scotland, outside the UK, would have to use current much tougher EU rules on VAT, warns the EU’s VAT unit. The UK having joined Europe back in 1972 got very to favourable VAT joining rules. These include zero-rating on food and children’s clothes. The EU has made it very clear if Scotland leaves the UK it would, as a newly independent country, have to apply to join the EU. Exactly the same happened to the Baltic countries Estonia, Latvia and Lithuania when they all joined the EU in 2004 after leaving the old USSR. The same with Slovenia which joined the EU in 2004, and then Croatia in 2013, after they both left the old Yugoslavia. So if a new Scotland could join the EU as a new member it would then have to apply the current EU VAT rules and lose all the existing UK zero-rating and other special provisions.

Eamon McNicholas
Tax Barrister, Accountant

About Eamon McNicholas

Tax Barrister, Accountant www.EamonMcNicholas.com
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