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VAT—Northern Ireland—triangulation [Archived]

ARCHIVED: Due to the reforms envisaged by The Windsor Framework, the details of which were announced by the UK government on 27 February 2023, this Practice Note has been archived and is not maintained. The information contained in this Practice Note is accurate as at 1 January 2021. For more information on The Windsor Framework and its implications for VAT in Northern Ireland, see: The Windsor Framework.This Practice Note is concerned with VAT as it applies to the movement of goods between Northern Ireland (NI) and the EU from 1 January 2021 (and as it applied to all VAT-registered businesses in the UK on and before 31 December 2020).Triangulation is an EU-based VAT simplification measure that was introduced to reduce the requirement for EU businesses to register for VAT in other EU Member States.Triangulation refers to the situation in which there is a supply of goods along a chain of three parties, but the goods are physically delivered from the first party in the chain directly to the last. Each...

VAT—Northern Ireland—triangulation [Archived]

VAT—Northern Ireland—triangulation [Archived] ARCHIVED: Due to the reforms envisaged by The Windsor Framework, the details of which were announced by the UK government on 27 February 2023, this Practice Note has been archived and is not maintained. The information contained in this Practice Note is accurate as at 1 January 2021. For more information on The Windsor Framework and its implications for VAT in Northern Ireland, see: The Windsor Framework. This Practice Note is concerned with VAT as it applies to the movement of goods between Northern Ireland (NI) and the EU from 1 January 2021 (and as it applied to all VAT-registered businesses in the UK on and before 31 December 2020). Triangulation is an EU-based VAT simplification measure that was introduced to reduce the requirement for EU businesses to register for VAT in other EU Member States. Triangulation refers to the situation in which there is a supply of goods along a chain of three parties, but the goods are physically delivered from the first party...

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What is the impact of Brexit on the VAT and Customs status of cross-border supplies of goods?

What is the impact of Brexit on the VAT and Customs status of cross-border supplies of goods? As with most aspects of Brexit, we are yet to ascertain the precise impact of the UK’s impending exit from the EU on cross-border VAT and Customs duty, so for now it is business as usual. In the event Brexit results in the UK leaving the EU Single Market (which encompasses the EU's 28 Member States as well as (with exceptions) Iceland, Liechtenstein and Norway through the Agreement on the European Economic Area and Switzerland through bilateral treaties) and the UK’s borders retreating to its territorial limits, all arrivals of goods in the UK from any other EU Member State would probably become imports (as explained in Practice Note: VAT—importing goods) and would no longer be acquisitions (as explained in Practice Note: VAT—Northern Ireland—buying goods in the EU [Archived]). There would probably be increased levels of customs import duty which would affect the amount of import VAT levied on goods...

What considerations arise in relation to VAT on the cross-border supply of goods and services between GB, NI and the EU from 1 January 2021?

What considerations arise in relation to VAT on the cross-border supply of goods and services between GB, NI and the EU from 1 January 2021? VAT—cross-border goods and services The Taxation (Cross-border Trade) Act 2018 makes provision for the UK to cease being a Member State of the EU and its customs union. However, the Northern Ireland (NI) Protocol to the Withdrawal Agreement provides that NI remains subject to EU VAT rules after IP completion day in relation to the supply of goods. As such, there are three discrete VAT regimes to consider, namely: • the supply of goods between GB and the EU • the supply of goods between NI and either the EU or GB • the supply of services between the UK and the EU Goods—GB Key points for practitioners to consider in respect of the VAT treatment of the supplies of cross-border goods involving GB from IP completion day include: • VAT is imposed on imports of goods from the EU to...

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Market comment—EU-UK Trade and Cooperation Agreement

Public Law analysis: An agreement for free (preferential) trade between the UK and the EU was finally reached on 24 December 2020, just 7 days before UK’s exit from the EU Single Market and Customs Union, and 11 months since the UK left the EU on a formal and official basis. With the end of the transitional arrangements at 11 pm on 31 December 2020 (IP completion day), the UK becomes a completely separate sovereign nation, albeit adhering to some of the provisions of the EU for the purpose of reciprocal trade and standards. In this analysis, Mark Rowbotham, Customs & VAT Consultant at Portcullis ISC, highlights some of the key features of the trade deal agreed between the UK and the EU.