Brexit: How should I invoice transactions with Northern Ireland?
Posted: Sun Dec 15, 2024 5:48 am
Find out in detail how to invoice Northern Ireland.
We explain the formalities you must comply with with the Tax Agency if you exchange goods with Northern Ireland.
The complexity of the border between Northern Ireland and the Republic of Ireland was one of the main stumbling blocks during the Brexit agreement. Ultimately, it was agreed to leave Northern Ireland in a special situation. For VAT purposes, it remains part of the EU for supplies of goods.
The United Kingdom left the European Union on 31 January 2020. However, the end of the transition period between the European Union and the United Kingdom expired on 1 January 2021. From this date, the special protocol on VAT with Northern Ireland came into effect.
In this context, in order to invoice transactions with Northern Ireland, the special VAT protocol, which came into force on 1 January 2021, must be taken into account.
Start of marked text¡End of marked textTWEET IT! With this article, you can find out how to invoice transactions with Northern Ireland.
Current situation for Spanish companies trading with the United Kingdom and Northern Ireland
From 1 January 2021, Spanish companies trading with the UK must take into account the following:
The flow of goods between Spain and the United Kingdom hotels and motels email list are not considered intra-community operations. They are considered imports or exports subject to customs formalities.
Northern Ireland continues to apply the VAT and Excise customs rules of the European Union with regard to trade in goods. Therefore, trade in goods with Northern Ireland will continue to be considered intra-Community transactions .
The special treatment applied to trade in goods between Northern Ireland and EU member countries does not extend to services .
In the case of goods entering the territory of application of Spanish VAT from the United Kingdom, the VAT settlement is carried out upon import by Customs. The company can opt for deferred VAT payment.
In the case of Northern Ireland, invoices will continue to be issued as before, that is, intra-Community invoices exempt from VAT .
Sage 50 makes it easy for you to issue and record all your invoices received and issued, as well as to prepare and submit tax returns, such as Form 349.
Taxation of transactions between Northern Ireland and Spain
These transactions are taxed at the destination. The delivery of goods in the country of origin is exempt from tax , and the taxable event takes place in the country of destination.
We explain the formalities you must comply with with the Tax Agency if you exchange goods with Northern Ireland.
The complexity of the border between Northern Ireland and the Republic of Ireland was one of the main stumbling blocks during the Brexit agreement. Ultimately, it was agreed to leave Northern Ireland in a special situation. For VAT purposes, it remains part of the EU for supplies of goods.
The United Kingdom left the European Union on 31 January 2020. However, the end of the transition period between the European Union and the United Kingdom expired on 1 January 2021. From this date, the special protocol on VAT with Northern Ireland came into effect.
In this context, in order to invoice transactions with Northern Ireland, the special VAT protocol, which came into force on 1 January 2021, must be taken into account.
Start of marked text¡End of marked textTWEET IT! With this article, you can find out how to invoice transactions with Northern Ireland.
Current situation for Spanish companies trading with the United Kingdom and Northern Ireland
From 1 January 2021, Spanish companies trading with the UK must take into account the following:
The flow of goods between Spain and the United Kingdom hotels and motels email list are not considered intra-community operations. They are considered imports or exports subject to customs formalities.
Northern Ireland continues to apply the VAT and Excise customs rules of the European Union with regard to trade in goods. Therefore, trade in goods with Northern Ireland will continue to be considered intra-Community transactions .
The special treatment applied to trade in goods between Northern Ireland and EU member countries does not extend to services .
In the case of goods entering the territory of application of Spanish VAT from the United Kingdom, the VAT settlement is carried out upon import by Customs. The company can opt for deferred VAT payment.
In the case of Northern Ireland, invoices will continue to be issued as before, that is, intra-Community invoices exempt from VAT .
Sage 50 makes it easy for you to issue and record all your invoices received and issued, as well as to prepare and submit tax returns, such as Form 349.
Taxation of transactions between Northern Ireland and Spain
These transactions are taxed at the destination. The delivery of goods in the country of origin is exempt from tax , and the taxable event takes place in the country of destination.