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.
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.
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.