The Northern Ireland Protocol means that Northern Ireland maintains alignment with the EU VAT rules for goods, including on goods moving to, from and within Northern Ireland. However, Northern Ireland is, and will remain, part of the UK’s VAT system.

HMRC will continue to be responsible for the operation of VAT and collection of revenues in Northern Ireland.

This guidance sets out how VAT will work for individuals and non-VAT-registered businesses moving goods between Great Britain and Northern Ireland in the small number of cases where a change to processes will occur.

Import VAT will apply to goods that enter Northern Ireland from Great Britain

The same will also broadly apply to goods entering Great Britain from Northern Ireland.

Existing flexibilities within the EU VAT rules have been used to ensure that VAT processes for individuals and non-VAT-registered travelling with goods from Great Britain to Northern Ireland remain as close as possible to what they are today.

For the vast majority of every day travel, no new process will be needed. Where goods are moved from Northern Ireland to Great Britain by an individual or non-VAT-registered business, no VAT will be collected, as is the case today.

If you travel with goods by air or sea between Great Britain and Northern Ireland

If you carry goods from Great Britain to Northern Ireland by commercial sea or air transports, in most cases, no VAT will be due.

When you’ll have to account for import VAT

You’ll need to account for import VAT on goods, including personal possessions, that:

• did not incur VAT of an equivalent value at the original point of purchase
• total more than £390 in value

If you send goods between Great Britain and Northern Ireland

If you send goods from Great Britain to Northern Ireland, in most cases, no VAT will be due.

When you will have to account for import VAT

You’ll need to account for import VAT where goods being sent:

• did not incur VAT of an equivalent value when the sender originally purchased the goods
• are valued under the gift relief threshold of £39 – this only applies to goods sent by individuals

The sender will be required to account for the import VAT on these goods.

Unregistered businesses carrying commercial goods between Great Britain and Northern Ireland

If you carry commercial goods for trade or business use from Great Britain to Northern Ireland, in most cases, no VAT will be due.

When you will have to account for import VAT

You’ll need to account for import VAT where:

• goods were originally purchased from a non-VAT-registered business.
• goods have been made from materials that cost less than the value of the final product, for example, where the sender has built a musical instrument or ornament

Where the goods are carried by a VAT-registered business, the import VAT should be declared and reclaimed through the business’s VAT return, resulting in a nil net tax effect. Businesses should document such movements in their own records as evidence that they have accounted for them correctly.

Further guidance on how to do this will follow shortly.

VAT Retail Export Scheme

The VAT Retail Export Scheme (RES) means retailers can offer refunds of VAT on goods to visitors who are resident outside the EU and Northern Ireland where they take those goods with them in their luggage when they return home.

Northern Ireland retailers, who offer the scheme, can continue to operate it in Northern Ireland, in much the same way as they currently do.

Check VAT Notice 704 for the conditions for visitors making a claim for a refund of VAT.

Additional conditions will apply where goods, purchased in Northern Ireland and removed to Great Britain.

When import VAT will be due

Import VAT is due on all goods arriving into Great Britain. If a refund were given then import VAT will be required to be accounted for on arrival into Great Britain. Personal allowances are not available for intra-UK journeys.

Where a visitor:

• removes goods to Great Britain lodges a RES claim with the retailer, the retailer must collect this import VAT and account for it on their VAT return at the same time as giving the refund of VAT under RES
• leaves Northern Ireland, for a country outside of the UK and EU, there is no requirement for the visitor to provide evidence that the goods have been declared and applicable taxes paid on arrival at their destination – if you’re a retailer you’ll still need to get an endorsed VAT407 claim form

When VAT will not be due

VAT will not be due on goods entering Great Britain from Northern Ireland if they have not been subject to a VAT RES claim.

Personal reliefs for permanently imported goods

VAT will be relieved on these movements of goods if your goods are permanently moved between Great Britain and Northern Ireland for any of the following reasons:

• change of residence
• marriage
• students studying
• honorary awards or decorations
• inheritance