Northern Ireland
Tertiary legislation about VAT in Northern Ireland (NI).
Also read about One Stop Shop (OSS) and Import One Stop Shop (IOSS).
The following text has the force of law under regulation 86 of the VAT Regulations 1995 and was originally published within Claim VAT refunds in Northern Ireland or the EU, if you’re established in Northern Ireland or in the EU - section 5.8.
1. Codes and sub-codes for goods required on refund applications
Use the codes in this section to describe the nature of the goods to reclaim.
Code 1: Fuel
Sub-code: 1.6 Fuel purchased for resale
Code 2
Code not in use
Code 3: Expenditure relating to means of transport (other than goods codes 1)
Sub-codes:
- 3.2 Expenditure relating to means of transport with a mass less than or equal to 3,500kg other than means of transport for paying
- 3.2.1 Purchase of means of transport with a mass less than or equal to 3,500kg other than means of transport for paying passengers
- 3.2.3 Purchase of accessories for a means of transport with a mass less than or equal to 3,500kg other than means of transport for paying passengers
- 3.4 Expenditure relating to means of goods transport
- 3.4.1 Purchase of a means of goods transport
- 3.9 Purchase of passenger car of ‘M1’ category
- 3.10 Purchase of accessories for passenger cars of ‘M1’ category
Code 4
Code not in use
Code 5
Code not in use
Code 6
Code not in use
Code 7
Code not in use
Code 8
Code not in use
Code 9: Expenditure on luxuries, amusements and entertainment
Sub-codes:
- 9.1 Purchase of alcohol
- 9.2 Purchase of manufactured tobacco
- 9.4 Expenditure on maintenance of pleasure craft if not services
- 9.5 Expenditure on works of art, collectors’ items and antiques
- 9.7 Expenditure on luxuries, amusements and entertainment other than 9.1, 9.2 and 9.3 if not services
Code 10: Other
Where you have entered code 10, with no accompanying sub-code, you must provide a free text description of the goods or services in English.
Sub-codes:
- 10.1 Tools
- 10.5 Purchase of property
- 10.5.1 Purchase of immoveable property
- 10.5.2 Purchase of immoveable property used as a dwelling
- 10.5.3 Purchase of moveable property other than code 2
- 10.6 Provision of water, gas or electricity through a distribution network
- 10.7 Gifts of a small value
- 10.8 Office expenses
- 10.10 Flat rate additions on livestock and agricultural produce
- 10.13 Goods acquired by a travel organiser for the direct benefit of the traveller
- 10.14 Goods purchased for resale other than 1.6
Notice made under The Value Added Tax (Northern Ireland) (EU Exit) Regulations 2020
The following text has the force of law under regulation 6 paragraph 3 of the Value Added Tax (Northern Ireland) (EU Exit) Regulations 2020 (originally published 30 December 2020)
1. Special Procedures
Where a person is required to hold evidence that goods have been placed within a special customs procedure, that evidence should consist of:
- the master reference number (MRN) of the entry to the special procedure; and
- the importer’s EORI number.
The following text has the force of law under regulation 19 of the Value Added Tax (Northern Ireland) (EU Exit) Regulations 2020.
1.
Where a non-taxable person is entitled to a VAT related credit on the removal of goods from Great Britain to Northern Ireland, such a credit shall be calculated:
- in the case of goods purchased, by applying the VAT fraction to the price paid when purchased in the UK from a UK VAT registered seller
- in the case of goods imported into the UK by the purchaser, the total amount of import VAT paid.
- in the case of goods manufactured, by the sum of the VAT paid in the UK on all goods used in the making of the product removed.
For travellers in respect of non-commercial goods or personal gifts in accompanied baggage, any liability shall be paid for using the Online Service for Passengers, available on www.gov.uk/duty-free-goods.
Other non-taxable persons with a liability, to VAT on arrival in Northern Ireland that is not discharged in full by the credit calculated above, shall keep a record of:
- the description of the goods imported into Northern Ireland;
- the customs value of the goods imported;
- the amount of credit on the purchase of the good, or parts thereof; and
- the net amount of VAT to be paid.
When HMRC makes further appropriate payment processes available, all net amount of VAT to be paid by the non-taxable persons shall be entered and paid through this facility.
The following text has the force of law under regulation 24 of the Value Added Tax (Northern Ireland) (EU Exit) Regulations 2020
1. XI indicator
Under Regulation 24, where a taxable person is required to notify HMRC that they are trading under the Protocol, they shall provide:
- their VAT registration number;
- the name and address of the registered business; and
- confirmation that they have engaged in a relevant transaction as defined in Regulation 22(2).
This shall be notified to HMRC.
The following text has force of law under Regulation 133F of The VAT Regulations 1995 (1995/2518) and was originally published in Notice 725.
1. Zero-rated supplies to VAT-registered customers in an EU member state
1.1 Zero-rated supply of goods
You must get and keep valid evidence Section 5 of VAT Notice 725 that the goods have been removed from Northern Ireland within the time limits set out at paragraph 1.2.
1.2 Time limits for removal of goods and evidence of removal
Where goods are removed from Northern Ireland and the call-off stock conditions are met paragraph 15.2 of VAT Notice 725 , the time limit for getting valid evidence of removal is 3 months from the time the goods leave Northern Ireland.
1.3 Goods removed to customers in EU member states after processing or incorporation
The following 11 bullet points have force of law.
- you must meet the conditions of paragraph 4.3 of VAT Notice 725, which have force of law
- the goods are only being delivered and not supplied to the third person in Northern Ireland
- no use is made of the goods other than for processing or incorporation into other goods for removal,
and your records show:
- the name, address and VAT number of the customer in the EC
- the invoice number and date
- the description, quantity and value of the goods
- the name and address of the third person in Northern Ireland to whom the goods were delivered
- the date by which the goods must be removed
- proof of removal obtained from the person responsible for transporting the goods out of Northern Ireland, and
- the date the goods were actually removed from Northern Ireland
- the goods you supplied have been processed or incorporated into the goods removed from Northern Ireland
2. Evidence of removal of goods — What to show on documents used as proof of removal
The documents you use as proof of removal must clearly identify the following:
- the supplier
- the consignor (where different from the supplier)
- the customer
- the goods
- an accurate value
- the mode of transport and route of movement of the goods, and
- the EU destination
Vague descriptions of goods, quantities or values are not acceptable. For instance, ‘various electrical goods’ must not be used when the correct description is ‘2,000 mobile phones (make ABC and model number XYZ2000)’. An accurate value, for example, £50,000 must be shown and not excluded or replaced by a lower or higher amount.
If the evidence is found to be unsatisfactory you as the supplier could become liable for the VAT due.
3. Other EU movements of goods — Call-off stock simplification Prescribed records
A supplier which dispatches goods from Northern Ireland must preserve the records it keeps in the Call-off Stock Register for 6 years.
A customer which calls-off goods in Northern Ireland must preserve the records it keeps in the Call-off Stock Register for 6 years.
The following text has force of law under Regulation 22ZZA(2)(b) of the VAT Regulations 1995(SI 1995/2518) and was originally published in Notice 725.
1. Copy of the EC Sales List (form VAT 101)
The paper form VAT101 is specified in this section of this notice for the purposes of VAT Regulations (SI 1995/2518), Regulation 22A(2)(a).
The electronic form VAT101 is specified in this section of this notice for the purposes of VAT Regulations (SI 1995/2518), Regulation 22A(2)(a).
The electronic form VAT101 is specified in this section of this notice for the purposes of VAT Regulations (SI 1995/2518), Regulation 22ZZA(2)(a).
2. Information you must provide on your EC Sales List
The following table specifies what information you must provide about goods you remove from Northern Ireland under call-off stock arrangements in your EC Sales List.
You must give all of the following information:
| Information | Description |
|---|---|
| Country code | The 2 letter prefix which identifies your customer’s country code, as shown in paragraph 16.18 of VAT Notice 725 |
| Customer’s VAT registration number | The VAT registration number of your customer in the EU member state. The table in paragraph 16.19 of VAT Notice 725 shows the only acceptable format of EU VAT numbers. We recommend that you check your customer’s VAT registration numbers regularly using the Europa website (see paragraph 17.1 of VAT Notice 725) |
| Total value of supplies in £s sterling | The total value for the appropriate period of: Sales of goods which you have supplied to each customer, leaving the indicator column blank (related services are services which form part of the price of the goods such as freight charges and insurance.) Triangular transactions, entered on a separate line for each customer and using code ‘2’ in the indicator column, and If you make a supply of services to a business which is not registered for VAT in their EU member state because it is below the registration threshold, but which has provided you with evidence that it is in business (for place of supply purposes), you should not include these supplies on your EC Sales List. If you’re completing a simplified annual EC Sales List you must insert £1 in the value column for each entry. If call-off stocks are removed to an EU member state then leave this field blank. Use code ‘4’ in the indicator column for a movement of call-off stocks to an EU member state and code ‘5’ in the indicator column for a return of call-off stocks. |
| New Intended Acquirer VAT Registration Number | The VAT number of the new intended acquirer if call-off stocks are reassigned to a new intended acquirer. Use code ‘6’ in the indicator column for a change of intended acquirer. Leave this field blank if the line does not relate to reassignment of call-off stocks. |
The following text has force of law under the VAT Act 1994, Schedule 6, Paragraph 11 and was originally published in VAT Notice 700.
1. Introduction to output tax — Values expressed in a foreign currency
For VAT purposes, amounts of money must always be expressed in sterling. If you need to convert an amount from a foreign currency into sterling, you must do so on the following basis:
(a) unless you have adopted one of the alternatives set out in (b) or (c), you must use the UK market selling rate at the time of the supply — the rates published in national newspapers will be acceptable as evidence of the rates at the relevant time
(b) as an alternative, you may use the period rate of exchange published by HMRC for customs purposes — the VAT general enquiries helpline can give you details of particular period rates, you may adopt this alternative for all your supplies or for all supplies of a particular class or description — if you opt for only a particular class or description, you should make a note of the details in your records at the time of adoption
You do not need to notify HMRC in advance if you wish to adopt this alternative, but having made such an option, you cannot then change it without first getting agreement by writing to the VAT Written Enquiries Team.
(c) you may apply in writing to the VAT Written Enquiries Team to use a rate — or method of determining a rate — which you use for commercial purposes but which is not covered by (a) or (b)
In considering whether to allow such applications, HMRC will take into account:
- whether the proposed rate or method is determined by reference to the UK currency market
- whether it is objectively verifiable
- the frequency with which it’s proposed to update it (forward rates or methods deriving from forward rates are not acceptable)
Whatever rate or method you adopt, the appropriate rate for any supply is that current at the time of the supply.
If you make supplies that fall within the Tour Operators Margin Scheme, read Tour Operators Margin Scheme (VAT Notice 709/5) for details of how to convert the value of your purchases.