Trading With Northern Ireland post Brexit

Trading between the UK mainland and Northern Ireland

Goods from NI will have VAT charged – this is reclaimable as input tax in the normal way. Goods shipped to NI will be VATable as before. There is no need for a new VAT code. If you wish to create a new VAT code (for your own benefit) it will be Standard rated. There are no changes required for accounting or the VAT form. The only change you may need to make is to obtain an XI EORI number. Talk to whoever deals with shipping.

Trading between Northern Ireland and the EU

If the exporter is based in Northern Ireland and ships to the EU he will need to account for that transaction under new VAT rules. Likewise if the importer is based in Norther Ireland and ships from the EU he will need to account for that transaction under new VAT rules. Where a business buys from Northern Ireland and Ships to the EU and Vice versa these are separate transactions and normal VAT rules apply. For more information go to https://www.gov.uk/government/publications/accounting-for-vat-on-goods-moving-between-great-britain-and-northern-ireland-from-1-january-2021/accounting-for-vat-on-goods-moving-between-great-britain-and-northern-ireland-from-1-january-2021