HMRC has updated VAT Notice 725 VAT on movements of goods between Northern Ireland and the EU to expand s 6 ‘Supplies to customers (including private individuals) who are not registered for VAT’ to reflect changes to the VAT treatment of distance selling between Northern Ireland and the EU with effect from 1 July 2021.
The new EU-wide rules on distance selling cover sales of goods by taxable persons in one EU member state to non-taxable persons (i.e. consumers) in another member state and provide a number of simplifications including the one-stop shop (OSS) which enables suppliers to deal with their VAT obligations in one place, rather than having to register for VAT in multiple EU countries. The EU rules also provide a non-union scheme, for third countries.
For distance sales of goods from Northern Ireland, the UK has introduced new rules which mirror the EU schemes (via the introduction of new Schedules 9ZD and 9ZE into VATA 1994). For businesses making distance sales of goods from Northern Ireland to the EU, UK VAT should continue to be charged until the value of supplies in a calendar year exceeds the EU distance-selling threshold (£8,818 or €10,000). Where the threshold is crossed, businesses will either need to register and account for VAT in all EU member states where they make supplies or alternatively submit a single quarterly return and payment for all EU sales through the OSS.
HMRC has updated VAT Notice 725 VAT on movements of goods between Northern Ireland and the EU to expand s 6 ‘Supplies to customers (including private individuals) who are not registered for VAT’ to reflect changes to the VAT treatment of distance selling between Northern Ireland and the EU with effect from 1 July 2021.
The new EU-wide rules on distance selling cover sales of goods by taxable persons in one EU member state to non-taxable persons (i.e. consumers) in another member state and provide a number of simplifications including the one-stop shop (OSS) which enables suppliers to deal with their VAT obligations in one place, rather than having to register for VAT in multiple EU countries. The EU rules also provide a non-union scheme, for third countries.
For distance sales of goods from Northern Ireland, the UK has introduced new rules which mirror the EU schemes (via the introduction of new Schedules 9ZD and 9ZE into VATA 1994). For businesses making distance sales of goods from Northern Ireland to the EU, UK VAT should continue to be charged until the value of supplies in a calendar year exceeds the EU distance-selling threshold (£8,818 or €10,000). Where the threshold is crossed, businesses will either need to register and account for VAT in all EU member states where they make supplies or alternatively submit a single quarterly return and payment for all EU sales through the OSS.
