Overview. The United Kingdom (UK) left the European Union on 31 January 2020. During this period the UK, for the purposes of Value-Added Tax (VAT), was treated as if it was a full European Union (EU) Member State. Northern Ireland continues to be subject to the same EU VAT rules on goods as EU Member States.
Do Northern Ireland have VAT numbers?
The NI number will be made up of your UK VAT number, with ‘GB’ replaced by ‘XI. HMRC will automatically issue traders with this number if they believe traders are shipping goods outside. From 1 January 2021 NI businesses will need an EORI number that starts with XI to: move goods between NI and non-EU countries.
Do I need to register for VAT in Northern Ireland?
If or when your annual turnover reaches £85,000 (the current VAT registration threshold ), you have to register for VAT. However, even if you don’t have to register for VAT, you may wish to consider registering voluntarily. To register for VAT, you have to apply to HM Revenue & Customs (HMRC).
Have Northern Ireland VAT numbers changed?
The VAT rules for businesses in Northern Ireland and for businesses that trade with Northern Ireland will change from 1 January 2021, write Frankie Devlin and Jennifer Upton of our VAT team. NI businesses will continue to submit one UK VAT return and have one UK VAT registration number.
What goods are exempt from VAT in Ireland?
0% (Zero) VAT rating includes all exports, tea, coffee, milk, bread, books, children’s clothes and shoes, oral medicine for humans and animals, vegetable seeds and fruit trees, fertilisers, large animal feed, disability aids such as wheelchairs, crutches and hearing aids.
Do I charge VAT on goods from Ireland to Northern Ireland?
VAT – Trade between Ireland and Northern Ireland Northern Ireland remains subject to the same Value-Added Tax (VAT) rules on goods as European Union (EU) Member States. This means: The supply and movement of goods between Northern Ireland and Ireland in either direction is unchanged.
Do you need an XI EORI number to send to Northern Ireland?
You do not need an EORI number if you only move goods on the island of Ireland or between an EU country and Northern Ireland. If you already have an EU EORI number you do not need to apply for an XI EORI number. Find out how to apply for an XI EORI number.
Do I charge VAT to Irish customers?
When you’re exporting products to Ireland from the UK, your invoice doesn’t need to have VAT, but it’s necessary to keep documentation as proof. When your invoice is for a service, VAT may need to be added, depending on whether you’re invoicing an Irish customer or Irish business. VAT should therefore be applied.
When do I need to account for VAT in Northern Ireland?
This guidance gives information about when you can, or need to, account for VAT on your tax return if you’re a UK VAT-registered business. 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.
How does VAT work when moving goods from the UK to Ireland?
When a UK VAT registered business moves its own goods from Great Britain into Northern Ireland it will have to account for output tax as if it had sold the goods to a third party. If it intends to use the goods solely to make taxable supplies, then it can claim the VAT as input tax subject to the normal recovery rule including partial exemption.
Do you have to pay VAT in Ireland after Brexit?
Northern Ireland continues to be subject to the same EU VAT rules on goods as EU Member States. EU VAT rules on services do not apply to Northern Ireland. A Brexit readiness notice on VAT on goods, including guidance on open movements on 1 January 2021, has been published by the EU Commission.
What is the rate of VAT in the Republic of Ireland?
As at 1 January 2015 the standard rate of VAT in the Republic of Ireland is 23%, but reduced rates of 13.5%, 9%, 5% or 4.8% may apply to some supplies. The reduced rate of 13.5% is for certain goods and services, including:
