Please enable JavaScript to view this site.

VT Transaction+

Navigation: Value Added Tax > Purchase of goods from abroad

Purchases of goods between Great Britain and Northern Ireland

Scroll Prev Top Next More

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 You should refer to HMRC guidance for details of your obligations for purchases of goods between Great Britain (GB) and Northern Ireland (NI).

Introduction

Under the Northern Ireland protocol, NI will be part of the UK VAT system whilst also maintaining alignment with EU VAT rules for movement of goods (not services). This is 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 have chosen 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 if this is 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. The

VAT Return

When the VAT return is run, the appropriate boxes will be populated with the required values, e.g. for a purchase of £100.00 net and £20.00 VAT:

VAT return element

Included in VAT return

Amounts included £

Input VAT reclaimable

Box 4

20.00

Net value of purchase

Box 7

100.00