Q: My client is a UK VAT Group registration with members being located in both mainland UK (GB) and Northern Ireland (NI). One of the GB based Group members is to transfer stock to another Group member based in NI. Prior to Brexit this transfer would not have been treated as a transaction for the purposes of VAT and so would not have been declared on the VAT Group\u2019s VAT return. Has Brexit changed this?\n\n\n\nA: One of the general rules of VAT Group registration is that a supply between VAT Group members, whether of goods or services, is disregarded for the purposes of VAT and so does not appear on the Group\u2019s VAT return and is not included in any partial exemption calculation the VAT Group may need to undertake.\n\n\n\nHowever, since Brexit, where this is a transfer of goods and those goods\nmove from GB to NI or vice versa or where goods in NI are moved between\nmembers, then this general rule has changed, with HMRC\u2019s guidance, providing\nadvice of this change; see link below.\n\n\n\nhttps:\/\/www.gov.uk\/government\/publications\/accounting-for-vat-on-goods-moving-between-great-britain-and-northern-ireland-from-1-january-2021\/accounting-for-vat-on-goods-moving-between-great-britain-and-northern-ireland-from-1-january-2021\n\n\n\nIn the client\u2019s case, the\ngoods are moving from GB to NI and so, according to HMRC guidance, the transfer\nis no longer disregarded for VAT purposes. \n\n\n\nInstead, the VAT Group\nmust treat the transfer as a sale with VAT due at the appropriate UK VAT rate\nand declare this on the Group\u2019s VAT return. \n\n\n\nThe Group must also treat\nthe transfer as a purchase, again declaring it on the Group\u2019s VAT return,\nclaiming the declared output tax as input tax, subject to any rules blocking\nthe input tax or restricting recovery if the Group is partially exempt or is\ninvolved in non-business activities.