07.06.22

VAT grouping change when goods are transferred to Northern Ireland

VAT grouping is often deployed in the UK when two or more eligible taxpayers are treated as one ‘person’ for VAT purposes. This can bring multiple advantages, including avoiding the need to pay VAT when transacting between members of the same group, and less cumbersome VAT-related administrative obligations.

UK VAT groups can currently contain members established in both Great Britain and Northern Ireland.

Supplies between members of a VAT group generally are disregarded for VAT purposes.

However, further to VAT notice 700/2, specifically section 7.3.2, when goods now move from Great Britain to Northern Ireland, VAT will now be due. This will be calculated in the same way as when a business moves its own goods.