The EU has launched fresh legal action against the UK after Boris Johnson's plan to rip up his own Brexit deal passed through the Commons.
Brussels announced new infringement procedures today after MPs backed the PM's bid to tear apart the deal he signed to resolve trade issues in Northern Ireland.
The controversial Northern Ireland Protocol Bill, which unpicks parts of the deal without EU agreement, was rushed through the Commons on Wednesday ahead of the summer recess.
The UK wants to change the protocol to make it easier for goods to flow between Northern Ireland and Great Britain.
But the move has enraged EU chiefs who claim overriding the deal breaks international law.
It has also angered other Tories, including former PM Theresa May, who believe it flouts international law and undermines the UK's global reputation.
Today, the EU accused the UK of failing to comply with significant parts of the protocol, including customs checks on goods coming to Britain from Northern Ireland.
It also accused the Government of not implementing EU rules on excise duties and VAT.
In a statement, the European Commission said: "Despite repeated calls by the European Parliament, the 27 EU Member States and the European Commission to implement the Protocol, the UK Government has failed to do so.
"In a spirit of constructive co-operation, the Commission refrained from launching certain infringement procedures for over a year to create the space to look for joint solutions with the UK.
"However, the UK's unwillingness to engage in meaningful discussion since last February and the continued passage of the Northern Ireland Protocol Bill through the UK Parliament go directly against this spirit."
The UK has two months to respond or the bloc could refer the complaint to European Court of Justice.
Last month, the EU also launched new proceedings over claims the UK has failed to share trade data and set up border inspection posts.
A Government spokesperson said: "It is disappointing that the EU has chosen to bring forward further legal action, particularly on goods leaving Northern Ireland for Great Britain which self-evidently present no risk to the EU single market.
“A legal dispute is in nobody’s interest and will not fix the problems facing the people and businesses of Northern Ireland. The EU is left no worse off as a result of the proposals we have made in the Northern Ireland Protocol Bill.
"We will review the EU’s arguments and respond in due course. "
It comes after the Government slipped out a written statement on Thursday revealing the Brexit divorce bill could rise to £42.5billion - up to £7.5billion higher than originally estimated.
On Thursday, Irish Foreign Affairs Minister Simon Coveney had said the EU was waiting to see what who the next PM would be before deciding its next move.
But Liz Truss - who is battling Rishi Sunak to be Tory leader - has been responsible for the bill in her role as Foreign Secretary.
The dispute risks a trade war, with tariffs being imposed or even the suspension of the entire Brexit deal between the UK and EU.
The Bill cleared the Commons on Wednesday but it faces a rocky ride through the Lords, where the Tories don't have a majority.