Based on this UK guidance goods moving between Great Britain and Northern Ireland will be treated as domestic supplies liable to VAT (unless exceptions apply, e.g. product specific reverse charges). In addition UK VAT will be due on movements of own goods from Great Britain to Northern Ireland. The UK VAT will be payable on the UK VAT Return and can be reclaimed under the normal rules. If the movement is not part of a sale or supply to a customer, there is however no requirement to charge VAT when the own goods are moved from Northern Ireland to Great Britain.
For more information, we'd like to refer to the policy paper of the UK Government "Accounting for VAT on goods moving between Great Britain and Northern Ireland from 1 January 2021".
More practical steps you can take in order to be fully prepared for Brexit are described in our Brexit Whitepaper. Read in this whitepaper all about the changes and action points regarding VAT and other trade compliance areas you should take into account as a consequence of Brexit. Download the Brexit Whitepaper here!
Daniëlle van der Meulen-Idema
Sr. VAT Specialist