Key VAT system changes

Feb 23, 2021

Under the Protocol, transactions in goods between Northern Ireland and EU businesses and consumers continue as they did before Brexit. Therefore, the same processes and reporting requirements apply. However, Great Britain is now outside the EU's VAT area and this means you may need to update your VAT system to cope with the changes that came in to effect on 1 January 2021.

 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 Great Britain and Northern Ireland
  • ensure any Intrastat declarations only include the relevant EU transactions (i.e. between Northern Ireland and Ireland)
  • ensure that VIES reports only include the relevant EU transactions (e.g. no Great Britain supplies)
  • understand that the 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)
  • ensure compliance with Making Tax Digital (UK only).