Abstract

The trade and cooperation agreement between the European Union and Great Britain (TCA) of 30 December 2020, covers three basic topics regarding tax and duty settlements. The first area concerns provisions on duty and VAT, with a main premise that the merchandise trade between the parties of an agreement should be included in a free-trade zone. The second area concerns direct taxes, where the TCA does not anticipate a tax ecosystem that is sanctioned with tax directives, therefore, redirecting full attention to bilateral tax agreements made by Great Britain with particular EU member states. Finally, the third area concerns provisions in the TCA that should guarantee the framework of an open and fair competition between the European Union and Great Britain, such as provisions regarding the rules of proper tax management, implementation of minimum OECD BEPS standards, and respecting the rules of subsidies’ control.