Whether you’re a European or non-European company, establishing certain activities in Northern Ireland may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Northern Ireland.
If you deal with companies in Northern Ireland, you may be able to claim a Northern Irish VAT refund.
Here you can find the specifics of VAT regulations in Northern Ireland, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.
|VAT introduced in Northern Ireland||1973|
|VAT name in Northern Ireland||Value-added-Tax|
|VAT ID format in Northern Ireland||XI123456789|
|Territories with special status in Northern Ireland||n/a|
VAT rates in Northern Ireland
|Standard VAT rate||20%|
|Reduced VAT rate (1)||5%|
|Reduced VAT rate (2)||n/a|
|Super reduced VAT rate||n/a|
|VAT parking rate||n/a|
|Zero VAT rate||yes|
Thresholds triggering VAT reporting obligations in Northern Ireland
|Intrastat threshold at introduction||1 500 000 GBP (1 743 112 EUR)|
|Intrastat threshold on dispatch||250 000 GBP (290 518 EUR)|
|Distance selling threshold||As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.|
Reporting frequency in Northern Ireland
|Intrastat declaration||monthly depending on threshold|
|EC Sales List (ESL) declaration||monthly, quarterly depending on threshold/conditions|
|VAT returns||monthly, quarterly , annually|
VAT-related penalties in Northern Ireland
|Failure to file a VAT return||Penalty of 2 to 10% of the amount of VAT due per reporting period.|
|Late payment of VAT||Penalty of 2 to 10% of the amount of VAT due per reporting period.|
|Failure to report ESL/DEB||Penalty of 5, 10 or 15 GBP per day overdue.|
Useful links on VAT in Northern Ireland
|Tax Authorities in Northern Ireland||Tax authorities|
|Ministry of Finance in Northern Ireland||Ministry of Finance|
|Check a VAT number in Northern Ireland||Check a VAT number|
|EU VAT Guide||EU VAT Guide|
The current VAT rates in Northern Ireland are as follows:
Certain transactions in Europe may require registering for VAT and filingVAT returns in Northern Ireland:
In Northern Ireland just like in other European Union countries, e-traders must register for VAT:
In addition to VAT registration, e-traders must:
You may need a VAT number in Northern Ireland to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification. To check if your activities require VAT identification in Northern Ireland, use our VAT simulator or contact us.
VAT Northern Irish is named Value-added-Taxand the VAT numbers in Northern Ireland have the following structure: XI123456789.
Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Northern Irelandyou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
Companies with a VAT number in Northern Ireland must complete and submit VAT returns in Northern Ireland detailing all taxable income (sales) and expenses (costs), with the following periodicity: monthly, quarterly , annually.
Failure to comply with the deadlines imposed by the Northern Irish authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.
These penalties are defined as follows in Northern Ireland:
In addition to VAT returns, companies may be required to provide the Northern Irish authorities with Intrastat & EC Sales List returns:
In principle, a non-resident company in Northern Ireland can recover all or part of the VAT incurred on its expenses.
There are three different scenarios:
*This information is subject to change without notice.
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