The Northern Ireland protocol will apply to supplies of goods between Northern Ireland Ireland.

From 1 January 2021, the current VAT treatment on the supply of goods, as well as the intra-community supply and acquisition of goods rules, will still apply when moving goods from Northern Ireland to Ireland.

Northern Ireland businesses will be required to complete EC Sales Lists when selling goods to VAT registered customers in the EU and Intrastat declarations (which are subject to the Intrastat threshold for dispatches and arrivals).

Ireland businesses moving and supplying goods to Northern Ireland will be required to report details of trade with Northern Ireland on the Intrastat system (subject to the threshold limits) and VAT Information Exchange System (VIES).

There will also be a requirement to put an “XI” prefix in front of your VAT number on your invoices if moving goods from NI to EU and to provide your XI prefix in front of your VAT number when communicating with suppliers moving goods from EU to NI.

September 2021 Update: Changes were introduced in respect of the movement of goods from Northern Ireland to the EU and imports of low value goods into the EU or Northern Ireland came into force on 1 July 2021. There is a new opt-in One Stop Shop (“OSS”) quarterly VAT reporting and payment systems for distance selling and an Import One Stop Shop (“IOSS”) monthly VAT reporting and payment systems for imports. This means that businesses which fall into the scope of these new rules are no longer required to VAT register in each of the EU member states of their customers. A business opting to register for OSS is able to do so once in any EU member state or in the UK, provided that it is VAT registered in the EU member state or is trading with the EU under the Northern Ireland Protocol.

The Northern Ireland Protocol will apply to the supply and movement of goods between Northern Ireland to GB and GB to Northern Ireland.

Click here to access HMRC’s policy paper setting out how VAT rules will apply to movement of goods between GB and Northern Ireland. VAT will continue to be accounted for by the supplier as it currently is on goods supplied between Northern Ireland to GB and GB to Northern Ireland.

Registering for VAT: VAT on goods sold between GB and Northern Ireland, VAT on goods sold from GB, transported via Northern Ireland, to an EU member state, If goods are located in GB at the point of sale, if goods are located in Northern Ireland at the point of sale, VAT on goods sold to GB from an EU member state via Northern Ireland, Businesses moving their own goods from GB to Northern Ireland, Businesses moving their own goods from Northern Ireland to GB. Sales of goods from GB to Northern Ireland, and within Northern Ireland, by members of a UK VAT group, VAT Retail Export Scheme. Personal exports of vehicles from Northern Ireland to GB, Sales of goods on board ferries between GB and Northern Ireland, Adjustments to input VAT on businesses moving their own goods, Intra-EU simplifications. Margin Scheme, Fiscal Warehouses.

VAT will also have to be accounted for when a business moves its own goods from GB to Northern Ireland, however, a business will not be required to account for VAT on the movement of own goods from Northern Ireland to GB unless the goods are subject to an onward sale to its customer in GB.

Exceptions to these rules will apply whereby the customer/importer will account for VAT in its UK VAT returns in certain cases. These include movements of goods between GB and Northern Ireland declared into a special customs procedure, supplies currently subject to domestic reverse charge rules, or supplies subject to onward supply procedures. Click here to access HMRC’s current manual on place of supply of goods.

Where goods are sold between members of a UK VAT group, and those goods move from GB to Northern Ireland, VAT should be accounted for in the same way as a movement of own goods. In order for domestic supplies of goods in Northern Ireland to be disregarded for VAT purposes when sold between members of a VAT group, both entities must be established, or have a fixed establishment in Northern Ireland. Where one or both members only have establishments in GB, VAT must be accounted for on the supply. To get further advice customs requirements on moving goods between Great Britain and Northern Ireland sign up here for the Trader Support Service.

September 2021 Update: GB businesses that are not VAT registered in the UK but are registered for IOSS are able to report their IOSS number to HMRC prior to moving goods to Northern Ireland but are not required to charge VAT on these supplies to customers in Northern Ireland. GB business not registered for IOSS should continue to use the existing VAT treatment or supplies of goods to Northern Ireland. Online marketplace liability does not apply in relation to GB businesses that make sales of goods to Northern Ireland customers. To access the policy paper on the EU VAT e-commerce package, click here. Further information about the UK’s existing scheme can be found  here.

Northern Ireland businesses will be required to complete EC Sales Lists when selling goods to VAT registered customers in the EU and Intrastat declarations (which are subject to the Intrastat threshold for dispatches and arrivals).

ROI businesses moving and supplying goods to Northern Ireland will be required to report details of trade with Northern Ireland on the Intrastat system (subject to the threshold limits) and VAT Information Exchange System (VIES). Click here for HMRC’s guidance on Intrastat declarations and here for the Irish Revenue’s guidance on VIES and Intrastat.

There will also be a requirement to put an “XI” prefix in front of your VAT number on your invoices if moving goods from NI to EU and to provide your XI prefix in front of your VAT number when communicating with suppliers moving goods from EU to Northern Ireland. Click here to check if you are trading under the Northern Ireland protocol.

The movements of goods between Ireland and GB will be treated as exports and imports for VAT purposes.

The UK announced that it intends to introduce postponed VAT accounting in respect of all imports into the UK from both EU and non-EU countries from 1 January 2021 for businesses that are VAT registered in the UK. Click here for more information from HMRC.

From 1 January 2021, you must continue to submit UK Intrastat arrival declaration for goods you import from the EU (including ROI) into GB until 31 December 2021. You will no longer need to submit an Intrastat declaration for goods you export from GB to the EU as outlined in the HMRC notice 60.

If you trade with GB after the transition period, the rules of trade with a non-EU country will apply between Ireland and GB. Therefore, supplies and movement of taxable goods between Ireland and GB will be subject to the VAT rules on exports and imports. Also, you will no longer have to report details of trade with GB on the Intrastat system or VIES. Intra-EU rules and simplifications, such as triangulation, will no longer apply to sales in GB.

Ireland businesses may be required to register for VAT in GB as outlined in the Irish Revenue’s guidance on the VAT implications of trade with GB. From 1 January 2021, you will need an EORI number to move goods between Ireland/EU and GB.

For GB businesses, you’ll need an EU EORI number if your business will be making declarations or getting a customs decision in the EU. You can get this from the customs authority in the EU country where you submit your first declaration or request your first decision. Click here to access HMRC’s guidance on EORI numbers.

September 2021 Update:  A business not established in the EU or Northern Ireland wishing to register for IOSS is able to do so in any EU member state or in the UK. Further guidance from HMRC on this should be made available. To access the policy paper on the EU VAT e-commerce package,  click here. Further information about the UK’s existing scheme can be found  here. HMRC confirmed that postponed VAT accounting is available permanently. A checklist has been provided by HMRC to help navigation, and the details you may need to complete you customer declaration using CHIEF have been updated. Click here to check when you can account for import VAT on your VAT return.

The movements of goods between Northern Ireland  and the rest of the world will be treated as exports and imports for VAT purposes. From 1 January 2021, you will need an EORI number that starts with XI to export goods from  Northern Ireland to rest of world and importing into  Northern Ireland from rest of world.  Northern Ireland  businesses will be issued with a unique Northern Ireland  EORI starting with XI. The XI EORI will also be used in respect of making a declaration in Northern Ireland  or to get a customs decision in Northern Ireland  in respect of GB to Northern Ireland movements.