The Northern Ireland Protocol ensures that Northern Ireland remains part of the UK’s VAT system. Its provisions on VAT rates provide the flexibility to introduce certain new zero and reduced rates in Northern Ireland. For example, this agreement allows the Government to meet its commitment of introducing a zero-rate for women’s sanitary products.
VAT raises a significant amount of revenue and plays an important part in funding the Government's spending priorities. While all taxes are kept under review, there are currently no plans to introduce any other zero or reduced rates of VAT.