Her Majesty’s Revenue and Customs (HMRC), the ministerial department of the UK Government responsible for the collection of taxes, has published recommendations for businesses who are registered for IOSS VAT to inform their government.
According to HMRC’s guidance, if you sell low value goods in consignments not exceeding 135 GBP in value into Northern Ireland, and are registered for the VAT Import One Stop Shop (IOSS) in the EU, you must inform HMRC of your IOSS registration number.
This would mean that as a UK VAT registered business you can account for supply VAT on your eligible sales of low value goods into Northern Ireland on your IOSS return. Moreover, you do not account for import VAT when the goods enter Northern Ireland.
You also must inform HMRC of your IOSS registration number if you act on behalf of a business as an EU intermediary*. You can include all the businesses you represent on one form.
*An intermediary is a person who is registered for IOSS and is responsible for accounting for VAT for a supplier who carries out distance sales of imported goods.
How to inform HMRC:
You can inform HMRC by clicking on the following link provided by HMRC.
What happens next?
If you are UK VAT registered
From 1 July 2021 if you’re registered for IOSS you should account for VAT on the sales of eligible low value goods in consignments not exceeding £135 in value into Northern Ireland on your IOSS return.
Note: If you make supplies of goods that are not covered under the IOSS scheme, you must account for VAT under the normal rules.
If you are NOT UK VAT registered
If you’re a business based in Great Britain (England, Wales and Scotland) registered for IOSS, you do not need to charge VAT on sales of low value goods into Northern Ireland.