New VAT aspects of B2C trade between EU and NI

If you trade with Northern Ireland (NI), then you need to be aware of major changes from 1 July 2021. This also applies if a NI business trades with the EU.
If you have opted for OSS, you may ask yourself how sales to or from NI should be reported.
The threshold of £70,000 for cross-border B2C selling from EU Member States (MSs) to Northern Ireland (NI) is NOT applicable after 1 July 2021.
An EU or NI seller may make use of an EU/NI-wide threshold of €10,000 instead.
No threshold applies for non-EU businesses who must register immediately in the MSs of destination or in the UK when selling to final customers in MSs or NI.
Alternatively, businesses may make use of the OSS and report all their sales via an OSS registration in their quarterly OSS return.
Once registered for the OSS, all distance sales must be reported via the OSS.
Services provided to NI customers cannot be reported via the OSS.
Different rules apply for B2C trade in goods between GB and NI and for services.

Source Grant Thornton



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