United Kingdom: VAT Group and Divisional Registration

HMRC has updated their information in relation to VAT groups and sales to Northern Ireland.

UK VAT groups are permitted to include members that are established in Northern Ireland and members from Great Britain.

Some small changes have been made to the way a VAT group operates when goods are moved from Great Britain to Northern Ireland or when goods in Northern Ireland are sold between members.

In most cases, the supply of goods between members of a VAT group are not subject to VAT.

Now, when goods are supplied between members of a VAT group and those goods are moved from Great Britain to Northern Ireland, VAT will now be due in the same way as when a business moves its own goods.

When supplies of goods are made between VAT group members and the goods are in Northern Ireland when they are supplied, these goods will not be subject to VAT if both members of the VAT group have a fixed establishment or are established in Northern Ireland.

If one or both members of the VAT group are only established in Great Britain, the goods will be subject to VAT and the VAT must be accounted for by the representative member. The VAT can be reclaimed under normal rules.

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