V3.612 VAT refunds involving Northern Ireland

Part V3 Supplies, acquisitions and imports

V3.612 VAT refunds involving Northern Ireland

V3.612 VAT refunds involving Northern Ireland

Following IP completion day (11pm on 31 December 2020), Northern Ireland remains aligned with the European Union. From 1 January 2021, under the Northern Ireland Protocol, a new set of rules applies to VAT refunds for businesses established in Northern Ireland and the European Union. Accordingly, from 1 January 2021, the EU law relating to VAT refunds continues to apply in Northern Ireland (but in respect of goods only).

VAT incurred by Northern Ireland businesses in the EU

A business established in Northern Ireland will be eligible to claim a VAT refund for VAT incurred on goods in a member state of the EU provided that the following conditions are met:


    •     it is a taxable person registered for VAT in the UK with an establishment in Northern Ireland


    •     it is identified as trading under the Northern Ireland Protocol and


    •     the claim must be in relation to goods only and the invoice must contain only supplies of goods

The claimant must not be registered or liable to be registered for VAT in the member state from which the claim is made and must have no fixed establishment, seat of economic activity, place of business or other residence there. In addition, it must not have supplied any goods in the EU member state of refund during the refund period (other than where VAT on

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