Accounting when you export to the UK from Ireland

Revenue applies the zero rate to goods transported directly by or on behalf of the supplier to a destination outside the EU VAT area, which includes Great Britain. The supplier must make sure the goods have left the EU and keep evidence: the export notification message for goods carried in your own vehicles, a bill of lading or shipping certificate for sea freight, a signed air waybill, or certificates of posting.

Goods moving between Ireland and Northern Ireland continue to be accounted for as intra-Community supplies and acquisitions, and VIES and Intrastat obligations stay the same. Northern Ireland traders use the XI prefix on their VAT numbers for these transactions, so record it on the customer’s details.

Goods imported from Great Britain are imports. Postponed accounting lets eligible businesses account for import VAT on the VAT3 rather than paying it at the border, with the value reported in box PA1. Code imports distinctly so the right boxes are filled.

From the Pro plan, HelloBooks raises invoices in sterling, records foreign bills at their transaction rate and posts exchange differences on payment. A sterling bank account is treated as its own account, so its statements upload and reconcile in sterling while reports stay in euro.

Services follow different rules from goods. The VAT treatment of a service supplied to a UK customer depends on the place-of-supply rules for that service and on whether the customer is a business. Code UK service sales to their own account and confirm the treatment with your accountant.

A sterling invoice raised today can be worth more or fewer euro by the time it is paid. Recording each invoice at its transaction rate and posting the difference on payment shows the real effect of currency swings on margins, which helps when you set prices.

Attach the export evidence to the sales invoice in HelloBooks: the waybill, the shipping certificate or the export message. In a Revenue review of a zero-rated sale, being able to produce the proof from the invoice itself saves a great deal of searching.