HMRC has updated its partial exemption guidance to include a new subsection PE68000 to cover the movement of own goods by partially exempt businesses from GB to Northern Ireland (NI).
Following the end of the transition period on 31 December 2020, goods in NI remain subject to EU VAT rules. Goods which are moved from GB to NI will therefore be subject to import VAT.
A partially exempt VAT registered business will be liable to import VAT on the movement of its own goods from GB to NI. Where such goods are intended to be used for either exempt or both taxable and exempt supplies, the business will have faced input tax restriction on their purchase and again on their movement to NI, therefore incurring double taxation on the same goods.
Source gov.uk
