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HMRC internal manual

VAT Northern Ireland and the EU

From:
HM Revenue & Customs
Published
11 June 2026
Updated:
16 June 2026 - See all updates

VATNIEU3335 - Supply and acquisition: acquisition: basic rules

The basic rules that apply to taxable acquisitions of goods are set out in paragraph 2(3) of Schedule 9ZA VATA 1994.  

2(3) An acquisition of goods from a member state falls within this subparagraph if: 

(a) the goods are acquired in the course or furtherance of 

(i) any business carried on by any person, or 

(ii) any activities carried on otherwise than by way of business by any body corporate or by any club, association, organisation or other unincorporated body, 

(b) it is the person who carries on that business or those activities who acquires the goods, and 

(c) the supplier 

(i) is taxable in a member state at the time of the transaction in pursuance of which the goods are acquired, and 

(ii) in participating in that transaction, acts in the course or furtherance of a business carried on by the supplier. 

Taxable acquisitions occur where goods are received from an EU member state. 

  • in the course or furtherance of a business, or 
  • as a result of an activity (not necessarily by way of business) undertaken by a body corporate or any other body or association, and 
  • where the supplier is taxable in the member state of origin of the goods. 

This means that private individuals are not subject to acquisition VAT on goods bought for non-business use. In that case the supply is normally subject to VAT in the member state of dispatch (but see VATNIEU3700 for information about distance selling). 

Goods acquired in respect of all activities carried out by any other entity for whatever purpose (not necessarily by way of business) are potentially subject to acquisition VAT in Northern Ireland. Depending on the values involved, this can result in a UK purchaser being required to register for VAT in the UK on the value of its acquisitions into Northern Ireland alone. For further information about this see the manual covering registration (see also VATNIEU3600). 

Special rules apply in the case of excise goods (see VATNIEU6400) and new means of transport (see the manual covering new means of transport)