The following guidance is applicable for businesses in the United Kingdom on or after 1 January 2021.
The information on this page is for general guidance only and should not be taken as definitive VAT advice, since individual circumstances may vary. VAT for Northern Ireland from 1 January 2021 is a complex area so you should refer to HMRC guidance for details of your obligations for purchases of goods between Great Britain and Northern Ireland.
For treatment of sales of goods, please see Sale of goods between GB and NI.
Under the Northern Ireland protocol, Northern Ireland (NI) will be part of the UK VAT system whilst also maintaining alignment with EU VAT rules for movement of goods (not services). This will be effective from 1 January 2021 and subject to review after 4 years.
EU VAT rules for NI mean that goods moving between GB and NI are technically classed as exports and imports for VAT purposes, however, HMRC intend to deviate from this and treat transactions between GB and NI as domestic transactions within the UK for VAT.
Accounting for VAT on VT Transaction+
Purchases of goods between NI and GB and vice-versa should be accounted for as domestic purchases within the UK for VAT purposes, however you should check HMRC guidance to confirm that this is definitely the case for your particular circumstances. Domestic purchases can be accounted for in VT Transaction+ in the normal manner, i.e. by entering the purchase using the PIN, PAY or CHQ transaction, and entering UK VAT at the appropriate rate in the Input VAT field.