The Notice
explains when supplies of goods sold by VAT-registered retailers in Northern
Ireland to overseas visitors for personal use and exported as accompanied
baggage can be zero-rated. In particular, it sets out the conditions that must
be complied with by retailers and overseas visitors using the VAT Retail Export
Scheme. For the purposes of the scheme, ‘overseas visitors’ are those who are
visiting Northern Ireland and who live outside of NI or the EU, and NI or EU
residents who are leaving NI and the EU for more than 12 months.
HMRC has
updated its guidance at section 6 ‘Overseas visitors removing goods to Great
Britain’ to explain how the VAT retail export scheme operates for purchases by
overseas visitors who travel directly from Northern Ireland to Great Britain
(including via an EU country) and those who travel indirectly – ie via a non-EU
country.
For direct
movements, Form VAT 407 must be stamped by a customs officer on leaving
Northern Ireland or the EU (whichever is the last point of exit before arrival
in Great Britain). Import VAT will be due on the goods on arrival in Great
Britain (there are no personal allowances for goods imported into Great Britain
from Northern Ireland via a direct movement). The guidance notes that in this
situation retailers may decide not to offer the retail export scheme.
For indirect
movements, the VAT 407 will need to be stamped by a Northern Ireland customs
officer on leaving Northern Ireland, or an EU customs officer on leaving the
EU. Import VAT will be due on arrival in Great Britain if the goods exceed the
personal allowances (the value of the goods will include any goods purchased
under the VAT retail export scheme in Northern Ireland).
The Notice
explains when supplies of goods sold by VAT-registered retailers in Northern
Ireland to overseas visitors for personal use and exported as accompanied
baggage can be zero-rated. In particular, it sets out the conditions that must
be complied with by retailers and overseas visitors using the VAT Retail Export
Scheme. For the purposes of the scheme, ‘overseas visitors’ are those who are
visiting Northern Ireland and who live outside of NI or the EU, and NI or EU
residents who are leaving NI and the EU for more than 12 months.
HMRC has
updated its guidance at section 6 ‘Overseas visitors removing goods to Great
Britain’ to explain how the VAT retail export scheme operates for purchases by
overseas visitors who travel directly from Northern Ireland to Great Britain
(including via an EU country) and those who travel indirectly – ie via a non-EU
country.
For direct
movements, Form VAT 407 must be stamped by a customs officer on leaving
Northern Ireland or the EU (whichever is the last point of exit before arrival
in Great Britain). Import VAT will be due on the goods on arrival in Great
Britain (there are no personal allowances for goods imported into Great Britain
from Northern Ireland via a direct movement). The guidance notes that in this
situation retailers may decide not to offer the retail export scheme.
For indirect
movements, the VAT 407 will need to be stamped by a Northern Ireland customs
officer on leaving Northern Ireland, or an EU customs officer on leaving the
EU. Import VAT will be due on arrival in Great Britain if the goods exceed the
personal allowances (the value of the goods will include any goods purchased
under the VAT retail export scheme in Northern Ireland).
