Changes proposed to EU VAT rules for Northern Ireland

Changes to the EU’s VAT rules in preparation for the end of the transition period with the UK have been proposed by the European Commission.

They amend the VAT Directive to introduce a special identification number for businesses in Northern Ireland so that EU VAT provisions can be properly applied to goods in line with the Protocol on Ireland/Northern Ireland. Under the protocol EU VAT legislation will continue to apply when it comes to goods traded in Northern Ireland. So goods sold and transported from Northern Ireland to the EU - and vice versa - will be treated the same as cross-border supplies of goods within the EU including for VAT exemptions and deductions.

These provisions will not apply to supplies of services in Northern Ireland which will be subject to UK VAT rules after the transition period. Supplies of goods...