Key facts
- NI follows EU VAT rules for goods and UK VAT rules for services.
- NI businesses use the “XI” prefix for EU trade (instead of “GB”).
- Goods moving from GB to NI are treated as imports for VAT purposes.
- Boxes 2, 8, and 9 on the VAT Return are used by NI businesses for EU trade.
How It Works
Under the Windsor Framework (formerly the NI Protocol), Northern Ireland has a dual VAT regime:[1]
- Goods: NI follows EU VAT rules for the movement of goods
- Services: NI follows UK VAT rules (same as Great Britain)
The XI VAT Number
NI businesses trading with the EU use an XI prefix on their VAT number (e.g. XI 123 4567 89). This XI number is recognised on the EU’s VIES system.[3]
Goods Moving GB to NI
Goods sent from Great Britain to Northern Ireland are treated as movements rather than exports. Special rules apply under the UK Internal Market Scheme and the Trader Support Service.[2]
Goods Moving NI to/from EU
NI businesses trading goods with the EU:
- Treat sales to EU as dispatches (not exports)
- Treat purchases from EU as acquisitions (not imports)
- Use VAT Return Boxes 2, 8, and 9 for these transactions
Impact on Your VAT Return
| Box | NI Businesses | GB Businesses |
|---|---|---|
| Box 2 | VAT due on EU acquisitions | Leave blank |
| Box 8 | Value of goods dispatched to EU | Leave blank |
| Box 9 | Value of goods acquired from EU | Leave blank |
Important: GB businesses (England, Scotland, Wales) leave Boxes 2, 8, and 9 blank since Brexit. These boxes are now only relevant for NI businesses.
Frequently Asked Questions
Does Northern Ireland follow EU or UK VAT rules?
Northern Ireland follows EU VAT rules for goods and UK VAT rules for services under the Windsor Framework.
What is an XI VAT number?
An XI VAT number is issued to Northern Ireland businesses for trading goods with the EU. It replaces the GB prefix and is recognised on the EU’s VIES system.
Is sending goods from England to Northern Ireland an export?
No. Goods moving from Great Britain to Northern Ireland are treated as movements, not exports, and special rules apply under the UK Internal Market Scheme.
Which VAT Return boxes do NI businesses use for EU trade?
NI businesses use Box 2 (VAT on EU acquisitions), Box 8 (goods dispatched to the EU), and Box 9 (goods acquired from the EU). GB businesses leave these boxes blank.
Further Reading
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Sources
- VAT and the Windsor Framework — GOV.UK
- Moving goods between GB and NI — GOV.UK
- VAT for NI businesses — GOV.UK