17/03/2021 (Agence Europe) – Member States’ ambassadors to the EU confirmed their agreement, on Wednesday 17 March, to the EU Council decision allowing the United Kingdom to continue to apply a special VAT scheme in Northern Ireland, which provides for flat-rate measures in respect of non-deductible value added tax on fuel costs of business vehicles and which deviates from the general rules of the VAT directive (see EUROPE 12657/14). From 1 January 2021, EU VAT legislation ceased to apply in the UK. However, based on the Protocol on Ireland and Northern Ireland, it remains applicable to Northern Ireland for goods to avoid a hard border between Ireland and Northern Ireland. As recommended by the Commission, the EU Council limits the derogation to 31 December 2023. The text should be formally adopted on 22 March at the Foreign Affairs Council. Read the EU Council decision: https://bit.ly/3eNM3Df (MF)