When goods are imported into the UK from outside the UK, VAT is usually due at the same rate as on a supply of those goods within the UK. Since January 1st, 2021, if your business is registered for VAT in the UK, you can account for import VAT on your VAT Return for goods you import into: 

• Great Britain (England, Scotland, and Wales) from anywhere outside the UK 
• Northern Ireland from outside the UK and EU

Movements between GB and NI are classed as domestic movements, and UK VAT should be charged accordingly. 

Which VAT Number to Use: To understand which VAT number to use for different movements, consider the following: 

GB VAT Number 

Goods remaining within the UK internal market are subject to UK VAT rules and are classed as domestic movements. These movements include: 

• GB to NI 
• NI to GB 
• NI to NI 

XI VAT Number 

Goods moving out of the UK internal market are subject to EU VAT rules under the Northern Ireland Protocol and are classed as intra-EU movements. These movements include: 

• NI to IE 
• IE to NI 
• NI to EU 
• EU to NI 

Movements between the Republic of Ireland and Northern Ireland are not only common; they are probably the most common intra-EU movements affecting Northern Irish businesses. This highlights the strong business ties between the two regions and Northern Ireland's unique position. 

Trading under the Northern Ireland Protocol:

To trade under the Northern Ireland Protocol, you need an XI VAT number. Most businesses with a Northern Ireland postcode will have been allocated an XI prefix to their VAT number. If you require an XI VAT number or are unsure about your VAT status, you can contact HMRC for assistance using the following link. 

https://www.gov.uk/register-for-vat/selling-or-moving-goods-between-northern-ireland-and-the-eu 

If you are interested in exploring this topic further, you might find it worthwhile to consider the training courses and live clinics offered by Strong & Herd LLP: