Great Britain’s Brexit caused many changes in the functioning of the whole of Europe. Previously, the simple rules of the European Union regarding trade between countries within the community have now turned into new regulations and rules for exports and imports.
What is xi number and when to use it?
January 1, 2021 is the date from which every company is required to have an EORI number starting with XI for the sale and purchase of goods between Northern Ireland and non-EU countries. For example, to export from Northern Ireland to the European Union, it will be necessary for every company, whether they are importing or exporting goods in order for them to have an EORI number starting with XI. However, the requirement does not apply to firms who sell/purchase less than €150K worth of goods each year between Northern Ireland and non-EU countries. Similarly with companies selling/purchasing more than €150K worth of goods each year between Northern Ireland and non-EU countries in the course of trade (not merely personal imports), it is necessary that they have an EORI number starting with XI in order to import/export.
How do I get an EORI number? Who needs it?
Any company registered in Europe but also outside of the EU who wants to import and export goods from outside the European Union must have an EORI number. When a company, outside the European Union, sells goods from another country to be delivered in the EU, it must be identified in some way. Therefore, a special number is assigned to her. Now, in addition, for some transactions, an XI number will be added.
Regulation of xi number
As the UK is considered a non-EU country at the beginning of 2021, this rule also applies to companies trading between Northern Ireland and the UK. In order to obtain an EORI number starting with XI, you must have an EORI number starting with GB. However, as the UK will be considered a part of the EU when it is officially recognised as such by all EU member states, from 1 January 2021 it will be necessary for businesses trading between Northern Ireland and the UK to also obtain an EORI number starting with GB.
VAT numbers in transactions with other countries will have to have the XI number instead of the GB number. This will distinguish international transactions from domestic transactions. For example, if a UK company purchases goods from Northern Ireland and VAT is payable on the transaction, it will be necessary for the company to have an EORI number starting with XI number.
Although an EORI number is not required for sales above €150K per year, it is still advisable to obtain one since it can make importing/exporting more efficient. While firms trading between Northern Ireland and the UK are subject to the new requirement in 2021, they may choose to convert their existing EORI numbers starting with GB before then.