VATNIEU3200 - Supply and acquisition: intra-single market supplies
Basic principles
For the most part intra-single market supplies follow normal supply principles. So, anything that would amount to a domestic supply of goods in Northern Ireland for VAT purposes, becomes an intra-single market supply where there is a movement of the goods between Northern Ireland and an EU member state.
Equally something that would not be treated as a supply of goods in Northern Ireland, for example a supply of services such as a lease of equipment, does not become an intra-single market supply of goods even if the lessee is in an EU member state to which the equipment has to be delivered.
Place of supply
The basic rule is that the supply takes place in the member state of removal. You can find out more about this in the manual covering the place of supply of goods (VATPOSG).
Time of supply
Intra-single market supplies from Northern Ireland to
non-VAT registered persons are subject to the normal UK domestic time of supply
rules. However, special rules apply to supplies made to VAT registered
customers in an EU member state. For further information see the manual
covering time of supply (VATTOS).
A supply of goods from Northern Ireland by a UK(XI) supplier to a VAT registered customer in an EU member state may be zero-rated, subject to various conditions. You can find out more about this in the manual covering exports and removals of goods from the UK (VEXP).
Goods supplied to unregistered persons in an EU member state are liable to UK VAT at the rate applicable to a domestic supply. So, a supply of, for example, stationery is liable at the standard rate, but a supply of books would be zero-rated. But, if the supplier is responsible for delivery and the level of supplies made to unregistered persons in the EU that exceeds the distance selling threshold, the supplier may be required to register for VAT in the member state concerned under the distance selling rules (see VATNIEU3700).
See also VATNIEU6400 for details of the special rules that apply to excise goods.