VATNIEU3305 | Acquisition: introduction

The term ‘Northern Ireland acquisition’ that is subject to VAT is applied to goods received (‘Acquired’) in Northern Ireland by a UK(XI) VAT registered business from a supplier who is registered for VAT in the member state from which the goods were dispatched. The acquirer is required to account for UK VAT at the rate that would have applied had it been a domestic supply. VAT is therefore not due on the acquisition of goods which are currently zero-rated in the UK, for example, books.

The VAT is accounted for on the acquirer’s VAT return covering the period in which the acquisition occurs (see VATNIEU3420). The tax may be recovered as input tax on the same VAT return subject to the normal rules.