evidence: On VAT rates, Northern Ireland is currently required by the Protocol to abide by EU law relating to VAT, but this may become less of a problem as the EU is in the process of changing its own rules to allow for greater flexibility on VAT rates. The two sides differ on whether the UK would require the permission of the EU to use the same VAT rates in Northern Ireland that apply in the rest of the UK. UK ministers will not accept this breach of sovereignty. One way of solving this problem would be for the EU to agree that the UK is perfectly free to apply a common VAT rate across the whole of the UK, including in Northern Ireland, but if the EU has any concerns from a competitiveness point of view then it could refer the matter to the adjudication mechanism established as part of the Trade and Co-operation Agreement to ensure a level playing field. [...] The DUP argues that there is a democratic deficit in Northern Ireland because its elected representatives have no say over EU rules. It is true that Northern Ireland has to abide by a whole set of European laws that are listed in the Annex to the Protocol and by any subsequent changes affecting that single market legislation. However, this should be put in perspective.