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Brace for Brexit 15: Trading in goods with Northern Ireland


The government has published a Taxation Bill which will implement key aspects of the Northern Ireland protocol into UK legislation. Neil Warren considers what this will means for businesses.

11th Dec 2020
Independent VAT Consultant
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As far as VAT and services is concerned traders in Northern Ireland (NI) will follow the same rules as GB countries (England, Wales and Scotland). We will still refer to ‘UK VAT rules for services’ when the transitional period with the EU ends on 31 December, the same way as now. But that is not the case with goods – NI will not be a member of the EU but will continue to follow EU rules for goods as a member of the customs union and single market.

EU rules remain

A business based in Northern Ireland will follow UK VAT rules for services and EU VAT rules for goods from 1 January 2021. The Brexit VAT changes for goods only apply to a business based in GB ie England, Scotland, Wales.

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Replies (2)

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By ColinNibbs
14th Dec 2020 09:47

I have a GB client who repairs jewellery for NI clients. The jewellery belongs to the customer of the NI client. Is that a service or supply of goods, bearing in mind that sometimes gold, for example, is added, and sometimes it is not? Is an XI EORI required?

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By steve.oldham
16th Dec 2020 09:57

What about B2C sales of goods from GB to NI? From a VAT perspective it's domestic, so charge the appropriate UK rate, nothing changes. But what about the subsequent shipment of the goods? Is that also a purely domestic concern because it's B2C? Or do the entry summary, no duty unless "at risk", and safety/security declarations still apply?

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