Brexit and VAT changes

VAT implications of trade with Great Britain

The United Kingdom (UK) left the European Union (EU) on 31 January 2020. The Withdrawal Agreement provided for a transition period until 31 December 2020. During this period the UK was treated as if it were a full EU Member State. 

At 11.00 pm on 31 December 2020, the UK became a third country for VAT purposes. If you trade with the UK (excluding trade in goods with Northern Ireland), the rules of trade with a non-EU country apply.

Note

Northern Ireland (NI) is treated as a Member State with regard to VAT on goods. NI is not treated as a Member State with regard to VAT on services.

This means:

It is important that you keep up to date with VAT legislative developments in the UK. These developments may result in a requirement to register for VAT in the UK or to report details of sales to HMRC.

You will find information about registering for VAT in the following:

Note

A VAT number is not required to apply for an Economic Operators Registration and Identification (EORI) number.

Postponed accounting for VAT on import is now available to all VAT registered traders. The Revenue Commissioners may exclude traders who do not fulfil certain conditions and requirements from using this scheme. 

Postponed accounting results in a VAT-neutral transaction for traders who import goods into Ireland. Traders do not have to pay VAT at the time of importation. You will find further information in Postponed accounting.

If you are exporting to Ireland from a third country, you are not, in general, required to register for VAT in Ireland.

Note

All persons who were registered for VAT and Customs and Excise (C and E) at 11:00pm on 31 December 2020 can avail of Postponed Accounting. In order to use postponed accounting, certain codes must be entered on import declarations. You will find further information in Payment of Import Duties for UK Imports

Next: VAT on services