- On January 1st, 2021, the UK officially left the EU, changing VAT accounting between the two
- Northern Ireland, sharing a land border with the EU, received a special VAT status to avoid a hard border
- The UK includes England, Wales, Scotland, and Northern Ireland, while Great Britain excludes Northern Ireland
- The Northern Ireland Protocol part of the Withdrawal Agreement keeps Northern Ireland aligned with EU VAT rules for goods
- Northern Ireland has a dual VAT system, following both EU and UK VAT regulations
- HMRC oversees VAT collection in Northern Ireland, using the standard UK VAT return
- A new XI VAT number prefix is used for transactions involving goods in Northern Ireland with the EU
- The XI prefix is necessary for goods in Northern Ireland sold to or bought from the EU, and for goods moved from Northern Ireland to the EU
- Northern Ireland adheres to EU VAT measures like OSS and IOSS since it follows EU VAT rules for goods
- The EU-wide distance selling threshold of EUR10,000 applies in Northern Ireland, affecting VAT payments in customer-based countries
- Businesses in Northern Ireland must use an EC Sales List for transactions with other EU businesses
Source: simplyvat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
