Brexit transition planning: Inform HMRC of NI trading
8 December 2020: An online form has been created to enable VAT-registered businesses to inform HMRC that they are trading goods in Northern Ireland or between Northern Ireland and the EU.
Under the Northern Ireland Protocol, from 1 January 2021 EU VAT rules will continue to apply in Northern Ireland with respect to goods. However, VAT-registered businesses need to inform HMRC that they are trading goods in Northern Ireland or between Northern Ireland and the EU.
This information will enable the businesses to continue to account for VAT on acquisitions and dispatches, to use VAT simplifications and allow suppliers to zero-rate goods that are dispatched from the EU.
VAT-registered businesses that need to inform HMRC are those with goods that are:
- located in Northern Ireland at the point of sale;
- received in Northern Ireland from a VAT-registered EU business; or
- sold or moved from Northern Ireland to an EU member state.
All VAT-registered businesses with a BT postcode should receive a letter from HMRC to let them know whether they have been automatically identified as operating under the protocol.
Those without a BT postcode that meet the requirements outlined above should inform HMRC using the new online form.
HMRC has published guidance to help businesses identify whether they will be operating under the protocol.