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29 Jun 2021

Changes to way goods are moved from NI to EU from July 1 - plus more Brexit rule amendments

From July 1, 2021, there will be changes in the respect of the movement of goods from Northern Ireland to the EU, and imports of low value goods into the EU or Northern Ireland.

The EU’s e-commerce package will introduce the changes, which also includes new rules for supplies made through online marketplaces, similar to those already applying in Great Britain and partly in Northern Ireland.

The changes are part of the Brexit process which began on January 1, 2021, and will simplify current VAT registration requirements for selling into the EU, making it easier for businesses to grow, stay compliant and protect their bottom line.

If you sell low value goods in consignments not exceeding £135 in value into Northern Ireland and are registered for the VAT Import One Stop Shop (IOSS) in the EU, you must tell HMRC your IOSS registration number.

This means:

  • if you’re UK VAT registered you can account for supply VAT on your eligible sales of low value goods into Northern Ireland on your IOSS return
  • you do not have to account for import VAT when the goods enter Northern Ireland

If you’re registered for the Import One Stop Shop (IOSS) as an intermediary to represent businesses in the EU for IOSS, and the businesses you act on behalf of make supplies of low value goods, you must tell HMRC your IOSS registration number and the details of each business. You must complete a separate form for each business you represent.

Find out more about registering your IOSS number with HMRC here

Find out more about the EU's e-commerce package here

More on Brexit and the rule changes here

Companies such as Avalara are helping businesses understand this rule change. Find out more 

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