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VAT in Northern Ireland, Isle of Man, Jersey, and Guernsey

By Anna / In Uncategorised / 6 Min read

There are 4 regions connected with the UK  but VAT rules differ in all of them.

 

Northern Ireland is a part of the UK but for VAT purposes, this region has a separate agreement with the EU. According to this agreement sales between the EU and Northern Ireland are treated as intra- community sales. That means that the distance sales threshold of £70,000 per year applies to sales to NI. In case you are an EU business and sell to NI business (B2B) with an NI VAT number you need to issue a reverse charge invoice and fill a sales list. If you sell B2C remotely to NI you charge domestic VAT until you reach a threshold.

It worth noting that in Amazon and eBay report you will see GB as a country, but you can distinguish sales to NI by arrival ZIP code – it always starts with BT (for example BT60 2TT)

 

Isle of Man this region is neither a part of the UK nor a part of the EU. It has its VAT legislation and customs. When you sell to IOM from the EU it is export and customs clearance in some cases is a buyer’s responsibility. As with any export, you as a seller apply a 0% VAT rate to remote sales to IOM. New marketplace legislation about deemed transactions doesn’t apply to sales to IOM. In Amazon and eBay report, you will see GB as a country of arrival, but you can distinguish sales to IOM by arrival ZIP code – it always starts with IM (for example IM7 3AE)

In case you have a GB VAT number and your warehouse is located in the UK when you sell goods to IOM buyers you need to collect GB VAT according to the agreement between UK and IOM. When you use Lovat platform you can see these transactions in the tax audit section – just set IMN as a country.

 

Jersey – this country is not a part of the UK and not a part of the EU. Jersey is a part of the customs union, which includes the UK, Guernsey, and the Isle of Man.

As with IOM when you sell your goods to this region remotely for your UK or EU business it is export with 0% VAT. Jersey is outside the UK VAT area. This country has GST 5% on the majority of goods. If the total value of the goods exceeds £135 then GST will be liable. If you sell remotely your customer will be responsible for VAT, UK marketplace legislation about deemed transactions doesn’t apply to sales to Jersey.

In Amazon and eBay report, you will see GB as a country of arrival, but you can distinguish sales to Jersey by arrival ZIP code – it always starts with JE (for example JE2 4LD)

 

Guernsey – this country is not a part of the UK and not a part of the EU. Guernsey is a part of the customs union, which includes the UK, Jersey, and the Isle of Man.

UK marketplace legislation about deemed transactions doesn’t apply to sales to Guernsey. As Guernsey has no VAT all goods that you import from the EU will become liable only to import duty.  De-minimis value for duties in Guernsey is £0. That means that if you send goods from the EU your customers need to do customs clearance.

For such orders in Amazon and eBay report, you will see GB as a country of arrival, but you can distinguish sales to Guernsey by arrival ZIP code – it always starts with GY (for example GY3 5UH)

In Lovat audit report you can see Guernsey transactions if you set Guernsey (GGY) as a country.