Date: 2023-11-09Category: Not ApplicableState: Union GovernmentCountry: Europe
Decision No 2/2023 of the Trade Specialised Committee on Administrative Cooperation in VAT and Recovery of Taxes and Duties established by the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part of 19 October 2023 on the amount and modalities of the financial contribution to be made by the United Kingdom of Great Britain and Northern Ireland to the general budget of the Union in respect of the cost generated by its participation in the European Information Systems [2023/2473]
Executive Summary:
This decision, adopted by the Trade Specialised Committee on October 19, 2023, establishes the financial contributions of the United Kingdom of Great Britain and Northern Ireland to the general budget of the Union for its participation in European Information Systems. It sets specific amounts for adaptation costs related to VAT and Recovery electronic forms and annual financial contributions through 2026, with payment deadlines and potential interest on arrears. The decision enters into force on the date of its adoption.
Key Points / Main Content:
Financial Contributions:
* The UK must pay EUR 36,250 for amendments to electronic VAT and Recovery forms. Payment is due within 60 days of the decision's adoption.
* The UK's annual financial contribution to the Union budget is EUR 12,600 until December 31, 2025.
* From January 1, 2026, the annual contribution increases to EUR 42,000.
* The annual contribution covers costs for development, maintenance, and upgrades of IT solutions (CCN, eForms, etc.).
* The annual financial contribution is re-evaluated yearly.
Payment Terms:
* All payments must be made in euros to the Commission's designated bank account within 60 days of the debit note.
* Late payments are subject to interest charges at the European Central Bank rate plus 1.5%.
* The Commission will request the UK to pay its contribution for the previous year by May 15th each year.
Entry Into Force:
* The decision is effective from October 19, 2023.
Impact Analysis:
European Commission:
Impact: Receives financial contributions from the UK for participation in European Information Systems and manages payments.
Action Required: Send debit notes to the UK, manage payments, and potentially charge interest on late payments. Re-evaluate the annual financial contribution yearly.
United Kingdom of Great Britain and Northern Ireland:
Impact: Required to make financial contributions to the EU budget for participation in European Information Systems.
Action Required: Pay EUR 36,250 for adaptation costs within 60 days of the decision. Pay annual contributions of EUR 12,600 until 2025 and EUR 42,000 from 2026 onwards, adhering to payment deadlines to avoid interest charges.
Key Entities Referenced
European Union: One of the parties in the Trade and Cooperation Agreement, responsible for the general budget to which the United Kingdom contributes.
European Atomic Energy Community: One of the parties in the Trade and Cooperation Agreement.
United Kingdom of Great Britain and Northern Ireland: One of the parties in the Trade and Cooperation Agreement, responsible for making financial contributions to the European Union's general budget.
Trade and Cooperation Agreement: The agreement between the European Union, the European Atomic Energy Community, and the United Kingdom of Great Britain and Northern Ireland that establishes the framework for trade and cooperation.
European Information Systems: A system of information managed by the European Union, in which the United Kingdom participates and contributes financially.
Regulation EU No 2021/847: A regulation of the European Parliament and the Council that lays down the rules for the development, operation, and maintenance of the European Information Systems.
Common Communication Network CCN: A Union component of the European Information Systems.
London: The city where the decision was adopted.
Official Journal EN
of the European Union L series
2023/2473 9.11.2023
DECISION No 2/2023 OF THE TRADE SPECIALISED COMMITTEE ON ADMINISTRATIVE
COOPERATION IN VAT AND RECOVERY OF TAXES AND DUTIES ESTABLISHED BY THE
TRADE AND COOPERATION AGREEMENT BETWEEN THE EUROPEAN UNION AND THE
EUROPEAN ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND THE UNITED KINGDOM
OF GREAT BRITAIN AND NORTHERN IRELAND, OF THE OTHER PART
of 19 October 2023
on the amount and modalities of the financial contribution to be made by the United Kingdom of
Great Britain and Northern Ireland to the general budget of the Union in respect of the cost
generated by its participation in the European Information Systems [2023/2473]
THE TRADE SPECIALISED COMMITTEE,
Having regard to the Trade and Cooperation Agreement between the European Union and the European Atomic Energy
Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part,(1) (‘the
Trade and Cooperation Agreement’) and in particular its Protocol on administrative cooperation and combating fraud in
the field of value added tax and on mutual assistance for recovery of claims (‘the Protocol’), in particular Article PVAT.39
(2)(g) thereof,
Whereas:
1. Regulation (EU) No 2021/847 of the European Parliament and the Council(2) lays down the rules for the
development, operation and maintenance of the European Information Systems.
2. The Common Communication Network (‘CCN’) and the electronic forms to be adopted pursuant to point (d) of
Article PVAT.39(2) of the Protocol are Union components of the European Information Systems.
3. Pursuant to Article 9(3) of Regulation (EU) No 2021/847, the use of the Union components of the European
Information Systems by non-participating countries is subject to agreements with those countries to be concluded
in accordance with Article 218 of the Treaty on the Functioning of the European Union.
4. It is necessary to determine the amount and the modalities of the financial contribution to be made by the United
Kingdom of Great Britain and Northern Ireland to the general budget of the Union in respect of the cost generated
by its participation in the European information systems,
HAS ADOPTED THIS DECISION:
Article 1
Adaptation costs
1. The amount to be paid by the United Kingdom of Great Britain and Northern Ireland for the amendments of the
electronic forms for VAT and Recovery to be adopted pursuant to point (d) of Article PVAT. 39(2) of the Protocol is
EUR 36 250.
2. The amount shall be paid within 60 days following adoption of this Decision.
(1) OJ L 149, 30.04.2021, p. 10.
(2) Regulation (EU) 2021/847 of the European Parliament and of the Council of 20 May 2021 establishing the ‘Fiscalis’ programme for
cooperation in the field of taxation and repealing Regulation (EU) No 1286/2013 (OJ L 188, 28.5.2021, p. 1.
ELI: http://data.europa.eu/eli/dec/2023/2473/oj 1/2EN
OJ L, 9.11.2023
Article 2
Annual financial contribution
1. Until 31 December 2025the annual financial contribution that the United Kingdom of Great Britain and Northern
Ireland shall pay to the general budget of the Union shall amount to EUR 12 600.
2. From 1 January 2026 the annual financial contribution that the United Kingdom of Great Britain and Northern
Ireland shall pay to the general budget of the Union shall amount to EUR 42 000.
3. The annual contribution shall cover expenditures related to the development, maintenance and upgrade of IT
solutions (CCN, e-forms, etc.).
4. The annual financial contribution is re-evaluated on a yearly basis.
5. By 15 May each year the Commission will request the United Kingdom of Great Britain and Northern Ireland to pay
its contribution for the previous year.
Article 3
Method of payment
All payments referred to in Articles 1 and 2 must be made in euros to the Commission bank account indicated on the debit
note, within 60 days. If the United Kingdom of Great Britain and Northern Ireland pays its contribution later than 60 days,
the Commission may charge interest on the arrears (at the rate applied by the European Central Bank to its operations in
euro, published in the ‘C’ series of the Official Journal of the European Union, on the day on which the deadline for
repayment expires, plus one and a half points).
Article 4
Entry into force
This Decision shall enter into force on the date of its adoption.
Done at London, 19 October 2023.
For the Trade Specialised Committee
The Co-chairs
Mariana HRISTCHEVA
Rachel NIXON
2/2 ELI: http://data.europa.eu/eli/dec/2023/2473/oj