VATNIEU4320 - Goods sent from Northern Ireland: supply position
If the owner of the goods is registered for VAT in the member state to which the goods are dispatched, the deemed supply in the UK can be zero-rated subject to the normal requirements, such as holding evidence of removal from Northern Ireland. For more information about this see the manual covering exports and removals of goods from the UK (VEXP) and VATNIEU4930 for EC Sales List.
If the business is not registered for VAT in the member state to which the goods are transferred, it isdeemedto be making a domestic supply in the UK and so must account for VAT at the rate applicable in the UK. This VAT is not recoverable as input tax. However, if the business subsequently registers for VAT in the member state to which the goods were transferred, and that registration is backdated to include the period when the goods were transferred, the deemed supply may be retrospectively zero-rated. But this is subject to
- possession of satisfactory documentary evidence that the goods have left Northern Ireland
- inclusion of the value of the deemed supply on a current EC Sales List (see VATNIEU4930), and
- acquisition tax having been accounted for on the goods in the member state of arrival.
Some member states will only register businesses from a current date, in which case the business should obtain written confirmation from the tax authorities in the member state concerned that it will not allow retrospective registration. Subject to this confirmation, and meeting the further conditions set out above, the supply may be zero-rated.
Where zero-rating issue sequently allowed under these arrangements any assessments issued in respect of UK VAT on the deemed supplies may be withdrawn.