The general rule is that the place … The Northern Ireland Protocol means that Northern Ireland maintains alignment on some administrative processes within the EU VAT rules for goods, including on goods moving to, from and within Northern Ireland. 12.0 13.0 14.0 Accounting OE. Traders in the EU only need one to cover all 27 member states. Instead, NI sellers to Irish (or any EU consumer) will be able to use a single VAT return (One-Stop-Shop, OSS). Export from GB with seller self accounting for UK import VAT; Then Intra-community NI to EU. Cross border services between NI, GB and EU are not part of the NI Protocol dual arrangement. Avalara has a range of solutions that can help your business depending on where and how you trade. The Northern Ireland Protocol means Northern Ireland has its own rules (see the Northern Ireland VAT and customs after 1 January 2021 section). It is intended that Northern Ireland traders will have full access to both the European Union market in goods and the Great Britain market in goods. It is likely that reporting the import VAT by the seller will be the easier option. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Key VAT system changes- Northern Ireland and Ireland. • Northern Ireland must also align with certain EU rules in areas such as agri-food and industrial products. HMRC has issued new guidance, which clarifies the VAT rules relating to movements of goods between Great Britain (“GB“), Northern Ireland (“NI“) and the EU from 1 January 2021, assuming there is no extension to the transition period. Businesses with NI postcodes will automatically be assumed to be operating within the terms of the NI Protocol. In short, the scheme means that NI is remaining in the EU with regard to the levying of VAT. Northern Ireland will remain aligned with the rest of the UK for VAT processes related to transactions in services. This will enable them to easily reclaim EU VAT incurred on travel, entertainment, travel, promotion and advertising expenses incurred in any EU member state. The goods must have been in free circulation in the EU prior to import to the UK. Northern Ireland Trade and VAT after Brexit. Brexit transition (UK and Ireland) Watch a video. Businesses in, or trading with, Northern Any business which has not received an 'XI' number that it believes it will need should contact HMRC. In order not to negatively affect trade between the Republic of Ireland and Northern Ireland, the so-called Northern Ireland Protocol was included in the Brexit agreement. Goods moving between Ireland and NI established traders are unchanged, and continue to be treated as movements across internal EU borders. Whereas GB businesses will have to use the burdensome paper-based country-by-country 13 Directive reclaims process after 31 December 2020. Note. Under the newly agreed Northern Ireland Protocol, the Value Added Tax Act (1994) will be amended so that Northern Ireland maintains alignment with the EU VAT rules for goods. Lower VAT rates or exemptions in Ireland would also be able to be applied in Northern Ireland. Brexit negotiations focussed on the unique situation of the island of Ireland, which is divided into the Republic of Ireland (EU member state) and Northern Ireland (part of the UK). VAT on services. Deliveries to and from Northern Ireland after BREXIT For Northern Ireland (NI), a temporary protocol applies on the basis of the Withdrawal Agreement between the UK and the EU. Don’t worry we won’t send you spam or share your email address with anyone. However, VAT on import into Northern Ireland will be charged by the carrier to your customer prior to delivery of the package, which could result in a large number of package refusals. Note this changes on 1 July 2021 under the EU e-commerce package when distance selling thresholds are scraped. If you are a UK VAT-registered business you should tell HMRC if you are a party in any of the above Protocol transactions so that: For NI trade with GB, this is treated as a domestic UK transaction so UK VAT applies. Under the Protocol, transactions in goods between NI and EU businesses and consumers will continue as they do today. Irish entities trading goods with GB customers will … A Brexit free trade deal with no goods tariffs or quotas was announced 24 December 2020. Register for Avalara's Virtual Ecommerce Summit. Course prices: Online: £ 229 +VAT per person After Brexit the general position will be that where an Irish business provide services to a business customer in the United Kingdom, VAT will not be chargeable in Ireland.Under the corresponding VAT legislation in United Kingdom VAT would be chargeable in the United Kingdom to the business recepient. This presumably means that EU VAT rates will apply in Northern Ireland. Sign up for our free newsletter for a summary of the latest tax news. So XI 123456789 - instead of GB 123456789. Under current EU rules, they are exempt for VAT if they do not exceed €22 / £15. Avalara EU > webinars, guides and products, GB to GB or Spilt on an invoice-by-invoice basis, XI to EU or Spilt on an invoice-by-invoice basis. Accounting for VAT on services between the UK and EU member states from 1 January 2021 and goods moved between Great Britain and the EU from 1 January 2021 has been added. For the  2021 UK ecommerce VAT reforms, there are special rules on B2C goods held in NI by overseas sellers. An exception to these changes is Northern Ireland which, unlike the rest of the UK, will remain aligned with EU VAT rules for goods. Statistical reporting & returns for trading with GB. | Richard Asquith. A special status for Northern Ireland The Brexit transition period ended at 11pm on 31 December 2020. From 1 January 2021 NI businesses will need an EORI number that starts with XI to: To get an EORI number that starts with XI, traders must already have an EORI number that starts with GB. These transactions under the NI Protocol are: All of the continuning trade between NI and EU will still be recorded in the UK VAT return in boxes 2, 8 and 9 of the VAT return as EU transactions - acquistions and dispatches. If above this, then EU import VAT is due by the customer or seller. … Any B2B goods moving between NI and GB are treated as domestic UK VAT supplies for VAT. EU Reverse Charge VAT On 31 December 2020, the United Kingdom left the EU and as a result, became a third country for VAT purposes. Following Brexit, and UK companies leaving the EU Customs Union after 31 December 2020, they will retain their GB EORI, but will need a second, EU number if importing into the EU. However, Northern Ireland (NI) VAT and customs has taken up a new dual UK-EU position as part of the Brexit Withdrawal Agreement. An EORI (Economic Operator Identification Number) is a unique number that identifies a trader with Customs. All content is available under the Open Government Licence v3.0, except where otherwise stated, Accounting for VAT on goods moving between Great Britain and Northern Ireland from 1 January 2021, How VAT will apply for goods imported into Northern Ireland from outside the UK or EU, How to claim a refund of VAT paid in an EU member state, Accounting for VAT on services between the UK and EU member states from 1 January 2021, Goods moved between Great Britain and the EU from 1 January 2021, VAT on movements of goods between Northern Ireland and the EU, Place of supply of services (VAT Notice 741A), How to fill in and submit your VAT Return (VAT Notice 700/12), The creative industries sector and the EU, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases. On selling or moving goods in Northern Ireland tax authority HMRC is responsible for the operation and of... In Europe as XI, and went on to work in Hungary, Russia and France EY! 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