VATRESNI3050 - How the scheme works: Goods moving to Great Britain

Retailers must follow specific VATRESNI rules when goods are moved from Northern Ireland to Great Britain. Import VAT applies upon arrival in Great Britain, with accounting depending on whether the movement is direct or indirect.

Direct Movement of Goods

  • Visitor travels straight from Northern Ireland to Great Britain, or from NI to the EU and then onto GB.
  • No personal allowance exists for these imports but retailers, not visitors, must account for import VAT.
  • The visitor's VAT407(NI) must be stamped by Customs at their last point of exit (Northern Ireland or the EU).
  • Northern Ireland Regulation 9 stipulates only the retailer is treated as importer for VAT purposes if the supply was zero-rated under VATRESNI and the visitor returns the VAT407(NI) for a refund.
  • Retailers must offset import VAT against any VAT refund, which should net off to £0.
  • Retailers may choose not to offer VATRESNI to those travelling directly to GB.

For guidance on transit flights via Great Britain, refer to VATRESNI4100.

Indirect Movement of Goods

  • Visitor travels from Northern Ireland to Great Britain via a non-EU country
  • The visitor may transit through the EU but must enter GB from a non-EU country.
  • VAT407(NI) must be stamped by Customs in NI (when leaving) or an EU customs officer (when leaving the EU).
  • On entering Great Britain, visitors pay import VAT if goods (including NI VATRES purchases) exceed personal allowances. They must declare and pay tax and duty as required.
  • Retailers refund VAT on receipt of validated VAT407(NI) form and proof of destination.