XI VAT Numbers

The Department of the Economy have recently become aware of a VAT issue with NI businesses operating under the NI Protocol and trading with the EU.

The issue concerns a business’s ability to access the VAT Information Exchange System (VIES). Fortunately it is easily remedied. If a business has not received a letter from HMRC and hasn’t notified HMRC that they are operating under the NI Protocol, they would need to take action to apply for an XI VAT number by completing and returning a G form. The XI VAT number is required to ensure the correct tax is paid when trading under the NI Protocol – there is no requirement for the business to be located in NI.

The best action to take in order to address this is to encourage all businesses trading with the EU under the NI Protocol to apply for an XI VAT number using a G Form. This is straightforward but it can take up to 48 hours to take effect after applying.

Here is the link: https://www.gov.uk/guidance/tell-hmrc-if-you-sell-goods-in-northern-ireland-or-move-goods-between-northern-ireland-and-the-eu-from-1-january-2021

As HMRC are unaware of the scale of the issue affecting NI businesses we would be grateful if you could bring this information to your members’ attention as soon as possible.

Supplementary Declarations

We are also interested in hearing from you and your members on their experiences to date in relation to the completion of supplementary declarations and assessment for tariff liability.

We would like to be in a position to raise any emerging issues with HMRC at the earliest opportunity and would welcome information from you on your experiences to date.

Please respond to Dfe.EUEXITCMB@economy-ni.gov.uk by 24thMarch 2021.

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