Commentary

V4.311 Zero-rating goods supplied to EU taxable persons

Part V4 Exemption, zero-rating and reduced rates

V4.311 Zero-rating goods supplied to EU taxable persons

Goods for removal to an EU member state—rules applying prior to 1 January 2021 and continuing to apply in respect of removals from Northern Ireland

V4.311 Zero-rating goods supplied to EU taxable persons

With effect from 1 January 2021, the UK is no longer a member of the Single Market and any movements of goods to/from Great Britain and the EU member states will be treated as imports and exports from this date. The section below describes the VAT treatment of supplies of goods to a EU member state whilst the UK was a member and during the transition period which ended on 31 December 2020.

However, Northern Ireland remains subject to EU rules in respect of movements of goods so the rules explained below are still applicable to Northern Ireland, although they may be amended to some degree as a result of the Taxation (Post-transition period) Bill 2019–21 (see Taxation (Post-transition Period) Bill 2019-21. One of the curiosities of the interaction of the Brexit rules and the Northern Ireland Protocol is that goods moving between Great Britain and Northern Ireland are, from the viewpoint of the UK as a whole, simultaneously imports and exports. More information on the rules relating to the movement of goods between Northern Ireland and Great Britain can be found at V3.360.

Prior to the introduction of the Single Market on 1 January 1993 (described at V1.210), exports of goods from the UK to another member state were treated in the same way as exports to

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