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Originally Posted by Hugh
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Good to see the EU corruption myth being called out for what it is. Some will find this uncomfortable no doubt.
---------- Post added at 13:34 ---------- Previous post was at 13:27 ----------
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Originally Posted by Sephiroth
would you need to work out the tariffs if it’s VAT? And how does it work with Switzerland which is not in the CU but has open border with France?
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It doesn't have an open border with France!
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This difference requires both sides to build and staff a hard border with sometimes significant delays. The French worry that someone might, for example, buy a frighteningly expensive Swiss watch, receive a Swiss tax refund since the watch is for export, and then not declare it for French VAT. The Swiss rigorously check that people have not spent more than €300 each on goods from France, depriving its exchequer of sales taxes. For trading companies, each load requires a customs declaration, multiple forms and stamps by the tax authorities to ensure that the formalities are closed on each side before goods cross the tax border. Within the Union none of this applies because complete regulatory alignment is married to an EU VAT regime, all within the customs union. This VAT system has its problems, but ensures that goods can flow across borders with no formalities. The Swiss-French border is efficient. There are no applicable tariffs. Regulations for goods are fully aligned. There is a common travel area between the two countries without the need for passport checks. But the border requires hard infrastructure because Switzerland is not in the EU VAT regime nor its customs union. Border frictions have separated markets either side of the border to the detriment of consumers. Regulatory alignment would remove only some of Brexit’s border barriers in Ireland.
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https://www.ft.com/content/2d30482c-...9-c64b1c09b482