How non-VAT registered UK sellers can use OSS for Northern Ireland – EU sales
The UK’s HMRC has issued updated guidance on Value Added Tax reporting of B2C sales from Northern Ireland to EU under the new One Stop-Shop single VAT return. This new guidance covers UK business under the UK VAT registration threshold of £85,000 per annum and who are selling goods from Northern Ireland to the EU.
See our previous guidance on EU Northern Ireland OSS reporting.
Such businesses must first voluntarily UK VAT register to report their EU sales via the OSS return. This is done via HMRC. When applying, the seller should choose ‘63990 Distance sales of goods (below UK VAT threshold) for OSS purposes’ to select your business activity when registering for VAT.
The seller may continue to NOT charge UK VAT on their domestic sales of goods to UK-resident consumers. This includes to Northern Ireland resident consumers.
Northern Ireland dual UK-EU VAT regime position
As part of the EU-UK Brexit deal, Northern Ireland remained a member of the EU VAT regime, as well as the UK system. This means sellers of goods to EU consumers from Northern Ireland to EU consumers should follow the new EU e-commerce package rules rather than as a UK export and EU import.