VATNIEU3750 - Supply and acquisition: distance selling: supplies by UK businesses to Member States
Invoicing
Article 220(2) of the Principal VAT Directive and regulation 13(1) of the VAT Regulations 1995 confirm that there is no requirement to issue VAT invoices for supplies to customers who are not registered for VAT, except where the supply is a distance sale.
13(1) Save as otherwise provided in these Regulations, where a registered person (P)
(c) receives a payment on account in respect of a supply of goods that P has made or intends to make from a person in a member State and P is identified for the purposes of VAT in Northern Ireland, P must, unless paragraph (1ZA) applies, provide such persons as are mentioned above with a VAT invoice.
In that case VAT invoices must be issued and regulation 31 of the VAT Regulations 1995 requires that copies be retained.
Registering in member states
As of 1 July 2021, there is a single pan European threshold of 10,000 euros (£8,818) which applies to distance sales between Northern Ireland and EU member states. Northern Ireland businesses who exceed this threshold and make distance sales from Northern Ireland to EU member states are required to register for VAT in each EU member state. For details of VAT registration procedures in EU member states, businesses should check with the tax authority concerned. Contact details can be found at VATNIEU1100. Alternatively, the business can register for the VAT OSS scheme with HMRC to report and pay the VAT due on all their distance sales to EU member states on a single quarterly OSS return. Further information on registering for the VAT OSS scheme with HMRC can be found at VAT One Stop Shop scheme - GOV.UK.
Failure to register in an EU member state
Follow the guidance in VATPOSG3550.