UK: HMRC Update Policy Paper on Goods Moving Between the UK and Northern Ireland

December 11, 2020

Following our last article published on 25 November 2020, HMRC has recently updated its policy paper outlining the VAT accounting processes that will apply to goods moving between Great Britain and Northern Ireland 1 January 2021.

Russell Hughes

Author

Sovos

This blog was last updated on December 11, 2020

The latest update includes changes made to the policy paper on the following topics:

VAT retail exports;
Personal exports of vehicles from Northern Ireland to Great Britain;
Fiscal warehouses;
Guidance on how VAT will apply for goods imported into Northern Ireland from outside the United Kingdom or the European Union;
Guidance on how to reclaim a refund of VAT paid in an EU Member State;
Guidance on whether one taxable person is trading under the Northern Ireland protocol;
VAT on goods sold from Great Britain, transported via Northern Ireland, to an EU Member State; and
VAT on goods sold to Great Britain from an EU Member State via Northern Ireland.

The end of the transition period is fast approaching, therefore, if your business sells goods to Northern Irish businesses or goods that pass through Northern Ireland and into the EU, it will be important to understand the VAT treatment due to the extra layer of complexity the withdrawal agreement brings.

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Keen to know how Brexit will impact your VAT compliance obligations? Download our recent webinar Brexit and VAT: Protect your valuable supply chains and minimise costly disruptions to find out more.

Russell Hughes

At Sovos, Russell works within the Consulting team providing UK and cross-border supply advice, detailed reviews on existing and new business activities and practical solutions to clients’ businesses. Prior to joining Sovos, Russell was the VAT manager of an award-winning tax team based in a firm of Chartered Accountants in the South East of England. Having initially begun his career in audit and accounts, he specialized in VAT in 2011, where he gained significant experience in cross-border issues, imports and exports, land and property, group registrations, partial exemption, HMRC enquiries and other complex VAT transactions. From June 2015, Russell was the sole VAT specialist in his previous company, where he led the firm’s VAT compliance and consultancy projects including all day-to-day VAT queries. Russell is also a member of the VAT Practitioners Group (VPG).

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