Goods moving between GB and NI from January 2021

HMRC has published new guidance Accounting for VAT on goods moving between Great Britain and Northern Ireland from 1 January 2021 to help UK VAT-registered businesses understand when they can, or whether they need to, account for VAT on goods moving between Great Britain and Northern Ireland after the end of the Brexit transition period. Although the Northern Ireland Protocol will maintain alignment between NI and the EU on some administrative processes, NI will remain part of the UK’s VAT system.

HMRC’s new guidance Moving excise goods as freight under the Northern Ireland Protocol from 1 January 2021 examines the different scenarios where excise goods are moved between NI and GB and the EU and the rest of the world, including where the goods are moved from one region to another via GB. The guidance also covers the excise movement and control system (EMCS) which will continue to apply (with modifications in some cases) unless alternative control systems have been specifically approved.