The Treasury has published explanatory notes summarising the potential impact for VAT in Northern Ireland of proposed changes to the EU principal VAT Directive (2006/112/EC) and Implementing Regulation (282/2011/EU), and Regulation 904/2010/EU on administrative cooperation in relation to VAT.
The EU proposals are part of its VAT in the digital age (ViDA) plans. The Treasury notes that ViDA could have an impact on Northern Ireland, given that the NI VAT rules for supplies of goods remain aligned with the EU. The notes highlight that the UK may need to develop new systems and reporting structures, should the proposed digital reporting requirements be implemented across the EU.
Key changes proposed by the EU are:
From 2025, online marketplaces facilitating sales of goods would have greater responsibility for collecting VAT on behalf of suppliers, bringing supplies made by EU businesses into scope (currently the rules are limited to supplies by overseas suppliers selling to EU consumers via the online platform).
The EU import one stop shop would also become mandatory for online marketplaces from 2025.
The EU one stop shop would be expanded to cover a wider range of goods, including movements of a business’s own stock.
The cross-border reverse charge would also become mandatory.
From 2028, standardised digital reporting for VAT (the EU’s ‘digital reporting requirements’) would be introduced to harmonise reporting standards across the EU, and e-invoicing would be mandated for intra-EU supplies of goods and services.
The Treasury has published explanatory notes summarising the potential impact for VAT in Northern Ireland of proposed changes to the EU principal VAT Directive (2006/112/EC) and Implementing Regulation (282/2011/EU), and Regulation 904/2010/EU on administrative cooperation in relation to VAT.
The EU proposals are part of its VAT in the digital age (ViDA) plans. The Treasury notes that ViDA could have an impact on Northern Ireland, given that the NI VAT rules for supplies of goods remain aligned with the EU. The notes highlight that the UK may need to develop new systems and reporting structures, should the proposed digital reporting requirements be implemented across the EU.
Key changes proposed by the EU are:
From 2025, online marketplaces facilitating sales of goods would have greater responsibility for collecting VAT on behalf of suppliers, bringing supplies made by EU businesses into scope (currently the rules are limited to supplies by overseas suppliers selling to EU consumers via the online platform).
The EU import one stop shop would also become mandatory for online marketplaces from 2025.
The EU one stop shop would be expanded to cover a wider range of goods, including movements of a business’s own stock.
The cross-border reverse charge would also become mandatory.
From 2028, standardised digital reporting for VAT (the EU’s ‘digital reporting requirements’) would be introduced to harmonise reporting standards across the EU, and e-invoicing would be mandated for intra-EU supplies of goods and services.
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