UK VAT returns for Irish companies

Selling goods into Great Britain, warehouses and online marketplaces

Many Irish companies first meet UK VAT because they sell goods into England, Scotland or Wales, hold stock in a UK warehouse, sell through an online marketplace, or import goods into the UK. Selling goods already stored in the UK is usually a UK supply. A UK warehouse does not by itself make you UK-established, but it can still create a duty to register.

A marketplace may account for VAT on many consumer sales, but you may still need a UK VAT number if you sell to UK VAT-registered businesses, sell goods located in Northern Ireland to a customer in Northern Ireland, make sales outside the marketplace, or want to recover import VAT. For goods outside the UK when sold, consignments valued at £135 or less often have VAT collected by the marketplace. Above that value, normal import VAT rules usually apply.

Imports, postponed VAT accounting and C79 certificates

If you import goods into Great Britain from outside the UK, or into Northern Ireland from outside the UK and the EU, and you are registered for UK VAT, you can often use postponed VAT accounting. You declare the import VAT on your VAT return and, where the normal rules allow, reclaim it as input tax on the same return, instead of paying it upfront. The option must be selected on the import declaration, with written instructions if an agent makes the entry.

The evidence is your monthly postponed import VAT statement from the Customs Declaration Service, usually available by the 10th working day of the following month. Keep a copy, because statements are only available for six months. A C79 is different: it is used when import VAT was paid through a duty deferment account, not when you used postponed VAT accounting. We deal with postponed import VAT statements and C79 certificates for clients regularly, and we reconcile them to your VAT return so the import VAT is claimed correctly.

Northern Ireland, the Windsor Framework and XI VAT

Northern Ireland is part of the United Kingdom, but goods moving between Northern Ireland and the EU follow a different VAT framework from goods moving in and out of Great Britain. Under the Windsor Framework, Northern Ireland aligns with EU VAT rules for movements of goods. Services are not in that goods regime and generally follow the ordinary UK place-of-supply rules.

If you are identified as trading under the Windsor Framework, you use an XI prefix in front of your UK VAT number on paperwork with EU customers or suppliers for goods, for example XI 123456789 rather than GB 123456789. The XI prefix is not used for services, for supplies within the UK internal market, or for trade between the UK and the rest of the world. If you also need an accountant for a Northern Ireland business, see our page for Belfast and Northern Ireland.

Making Tax Digital for VAT

Once you are registered for UK VAT, you must keep the required records digitally and submit returns using compatible software, unless HMRC has agreed a rare exemption. TreyBridge is a Xero Gold Partner. Xero can keep digital records and submit VAT returns to HMRC. We also support QuickBooks, Sage and FreeAgent, and we are Dext experts. You can check HMRC's list of compatible software, and our article on choosing software for Making Tax Digital. You do not have to use Xero if your current software can meet the rules.

VAT return deadlines and paying HMRC from Ireland

Most businesses send a VAT return every three months, and some file monthly. You must submit a return for every period, even if there is no VAT to pay or reclaim. The deadline is usually one calendar month and 7 days after the end of the accounting period. For example, a period ending 31 March is usually due by 7 May. That is also the date by which your payment must reach HMRC, even if it falls on a weekend or a bank holiday.

You can pay HMRC from an Irish bank account. Overseas payments should be made in sterling, using the HMRC VAT bank details published on GOV.UK. Use your 9-digit UK VAT registration number, with no spaces, as the payment reference, and allow time for the payment to arrive.

Penalty points and late payment interest

HMRC treats late returns and late payments separately. A late VAT return, including a nil return, attracts a penalty point. For quarterly returns the threshold is 4 points, and for monthly returns it is 5. Reaching the threshold triggers a £200 penalty, and a further £200 for each later late submission while you remain at that threshold.

If you pay late, interest runs from the first day the payment is overdue until it is paid in full, at the Bank of England base rate plus 4%. From day 16 a first late payment penalty of 3% can apply. From day 31 that penalty can increase, and a second penalty can accrue daily at an annual rate of 10% on the balance.

Tax representatives, VAT agents and security

A tax representative is jointly and severally liable for your VAT debts and must account for UK VAT on your behalf. A VAT agent can be authorised to deal with HMRC and prepare returns, but is not liable for your VAT debts. HMRC does not automatically require an Irish company to appoint a tax representative. It can direct some non-established businesses to appoint one, but it cannot direct businesses based in countries where certain mutual assistance arrangements exist, and it can also ask for a security. TreyBridge usually acts as your VAT agent, and for some clients we act as formal UK tax representative. We will agree which role fits your business before we start.

To act for you, we use an HMRC agent services account. You authorise us through HMRC's digital handshake, and you have 21 days to accept the link using the Government Gateway sign-in details for your VAT account.

If you stop making UK taxable supplies

The usual £88,000 deregistration threshold is not available if you have no UK establishment. You can only cancel a UK VAT registration if you have completely ceased to make taxable supplies in the UK. You must tell HMRC within 30 days, file a final VAT return, and keep your VAT records for 6 years.

How TreyBridge helps

We will talk through how you sell into the UK and whether you already have a UK VAT number. If you still need to register, we can help with the application and the first return. If you are already registered, we will agree whether the returns are monthly or quarterly, and how the figures will reach us.

Day to day, that usually means bookkeeping in Xero or your existing software, invoices and receipts captured through Dext where it helps, and a Making Tax Digital VAT return submitted on time. We will also help with import VAT evidence, deadlines and payments, and deal with HMRC as your authorised agent. This sits with the rest of what we do, including management accounts and tax planning.

Related services: Management accounts · Tax planning

Aaron Gilmore, the founder, is personally ACCA registered. The firm itself is not an ACCA firm. TreyBridge is supervised by HMRC for anti-money laundering and is registered with Companies House as an Authorised Corporate Service Provider. We have one office, in Hull, and we work with owner-managed businesses across the UK and Ireland. There is no London office, and no office in Ireland. We will agree the scope and confirm the fee with you before we begin.