Certain European Union countries should lift internal border restrictions on travel by June 15, the European Commission said June 11. The press release said the 26 Schengen Area member states of Western Europe are among these countries. While the commission is not proposing an EU-wide lifting of travel restrictions “given that the health situation” in certain countries is still “critical,” the restrictions should be lifted for other nations that are no longer experiencing health issues and that can “apply containment measures during travel.” The EU wants to remove restrictions on travel to the EU starting July 1, EU Home Affairs Commissioner Ylva Johansson said. “International travel is key for tourism and business,” she said. “While we will all have to remain careful, the time has come to make concrete preparations for lifting restrictions with countries whose health situation is similar to the EU's.”
Cyprus will defer value-added tax payments for companies affected by the COVID-19 pandemic, according to a June 10 news release. Under the measure, Cyprus will not impose penalties or interest on VATs that were due by April 10, May 10 or June 10 as long as they are paid by Nov. 10, the release said.
The United Kingdom plans to implement measures to support its technology industry, expand export markets and further integrate tech companies into free trade agreements, said a June 9 news release. The measures will “increase tech exports to fast-growing international markets,” including Asia, the U.K. said. “Trade agreements we are negotiating with key partners will go further than others in addressing barriers to digital trade, opening up huge opportunities for our exporters,” International Trade Secretary Liz Truss said in a statement.
Germany will temporarily reduce value-added tax rates, a June 9 KPMG post said. The measure, in effect July 1-Dec. 31, will reduce the standard VAT rate from 19% to 16% and the VAT “reduced rate” from 7% to 5%, the post said. The reductions aim to help mitigate impacts of the COVID-19 pandemic.
The United Kingdom’s Export Control Joint Unit updated the list of companies approved to use the country’s open general trade control license for certain controlled goods, a June 9 notice said. The updated list includes more than 40 registered companies.
Ukraine passed a law to reestablish export value-added tax refunds for shipments of soybeans and rapeseed for “all exporters,” according to a U.S. Department of Agriculture Foreign Agricultural Service report released June 1. Previously, only agricultural producers directly handling oilseed exports were eligible for the 20% VAT refund, which put traders and small agricultural producers in a “disadvantaged position,” the USDA said.
The European Union and the United Kingdom have made “no substantial progress since the beginning” of negotiations over a permanent arrangement following the U.K.’s withdrawal from the EU at the end of January this year, said EU lead negotiator Michel Barnier in a June 5 statement. The two sides “cannot continue like this forever,” Barnier said, “especially given the United Kingdom's continued refusal to extend the transition period.”
Germany asked the European Union to impose sanctions on Russia for a 2015 cyberattack on Germany’s parliament, Germany’s Federal Foreign Office said May 28, according to an unofficial translation. Germany said it will ask the EU to invoke its “cyber sanctions regime … with respect to those responsible for the attack,” including Russian national Dmitri Badin. Germany issued an arrest warrant for Badin after alleging he worked with others to “carry out intelligence activities” against the country. Germany added that it is considering “further measures.”
The European Union will no longer require EU-wide export authorizations for personal protective equipment. The export authorization scheme, first announced in March (see 2003200029), was intended to ensure adequate EU supply of medical goods during the COVID-19 pandemic, the European Commission said in a May 26 notice. The commission said the scheme “served its purpose” and “there have been no requests to prolong the scheme.” It officially ended May 26.
Russia is considering a draft bill that would allow imports of sanctioned goods under certain circumstances, according to a May 22 post on a Baker McKenzie blog. The bill, proposed earlier this month, will allow imports if the goods constitute “essential commodities that do not have analogues in Russia” or if Russia is experiencing a shortage of those goods due to the COVID-19 pandemic, Baker McKenzie said.