Key VAT system changes- NI and ROI

Jan 03, 2021

Under the Protocol, transactions in goods between NI and EU businesses and consumers will continue as they do today. The same processes and reporting requirements will apply. However GB will be outside the EU's VAT rules.

From 1 January 2021, you may need to update your VAT system. Below are some actions you might consider implementing:  

  • Ensure that digital records and functional compatible software are updated with new transaction treatments where relevant
  • Understand Brexit’s impact on master data, invoicing templates and reporting
  • Ensure transactions are coded correctly
  • Ensure a distinction exists in ERP systems between GB and NI
  • Intrastat declarations should only include the relevant EU transactions (i.e. between NI and ROI)
  • VIES reports should only include the relevant EU transactions (e.g. no GB supplies)
  • EU VAT refund (EVR) system will no longer apply for VAT incurred in the UK from 31 March 2021 (similar VAT reclaim available under the 13th Directive)
  • From a UK perspective, you must ensure compliance with Making Tax Digital.