From 1 January 2021, the United Kingdom will be considered, from a VAT perspective, a third country. However, we must keep in mind that there is an exception for Northern Ireland. The United Kingdom includes England, Wales, Scotland and Northern Ireland.
If suppliers or customers come from England, Wales and Scotland, they will be considered to be from a third country. If customers or suppliers are from Northern Ireland, Community rules, including Directive no. 112/2006 on the common VAT system continue to be applicable. We note this exception applicable to business partners in Northern Ireland from a VAT perspective.
Fundamentals of trade in goods
a) Purchases of goods from the United Kingdom
If the goods come from England, Scotland, Wales, they have the character of imports of goods for which a customs import declaration must be lodged. As a consequence, VAT paid to customs in Romania will be due. Purchases of goods from Northern Ireland are assimilated to intra-community purchases of goods and respect, in principle, the reverse charge mechanism when the beneficiaries in Romania are registered for VAT purposes in Romania.
An intra-community acquisition of goods will also be considered as an acquisition of goods from Northern Ireland by persons not registered for VAT purposes, of course following their specific procedure.
b) Shipments of goods to the United Kingdom
If the goods are transported to England, Scotland or Wales, they will be considered exports of goods, upon submission of the export customs declaration. These exports are exempt from VAT with the right of deduction. See OMFP no. 103/2016 amended by OMFP no. 2148/2020 on the justification of the VAT exemption on exports.
The transport of goods from Romania to Northern Ireland is, in principle, assimilated to an intra-community supply of goods. If the beneficiary communicates a valid VAT code, this delivery is exempt from VAT in Romania. See OMFP no. 103/2016 amended by OMFP no. 2148/2020 on the justification of the VAT exemption for intra-community deliveries.
If the beneficiary in Northern Ireland does not communicate a valid VAT code, either the transaction is taxable in Romania or we need to check a possible distance selling procedure.
Additional source of information: