Northern Ireland – Your Gateway to the EU and UK Markets?

In recent years, Northern Ireland has gradually become a popular registration destination for cross-border e-commerce businesses and international enterprises due to its unique geographical and policy advantages.

At TBA, we have also received and processed numerous Northern Ireland company registration cases.

A Northern Ireland business holds a distinct trade advantage in the e-commerce sector.  It allows businesses to benefit from both UK and EU policies, making it easier to access and establish a presence in the UK, EU, and even global markets.

So, what are the specific advantages of registering a company in Northern Ireland?

What are the necessary requirements to complete the application?

Northern Ireland’s Unique Trade Status

Following Brexit, Northern Ireland enjoys a unique trade position.

Under the Northern Ireland Protocol, it remains part of the UK’s internal market (alongside England, Scotland, and Wales) whilst also being included in the EU’s single market.

This dual-market access provides Northern Ireland with the following trade advantages:

• Free access to the EU market – Northern Ireland companies can sell directly to EU countries without additional tariffs, quotas, or complex customs declarations. In contrast, businesses in other parts of the UK (such as England) must comply with extra tariffs and border checks when exporting to the EU.
• Unrestricted trade with the UK – Northern Ireland companies can still trade freely with the rest of the UK without additional tariffs or border checks.
• Stable supply chains – Since Northern Ireland businesses can access both UK and EU markets, cross-border e-commerce sellers can use Northern Ireland as a transit hub for more efficient goods circulation.
• Ideal for logistics and warehousing – Northern Ireland’s strategic location at the crossroads of the UK and EU markets, along with its well-developed ports and shipping networks, enables quick transportation to mainland Britain, Ireland, and continental Europe.

Advantages of Registering a Company in Northern Ireland

Northern Ireland’s tax policies are, to some extent, more attractive than those in the rest of the UK. This is one of the key reasons why many e-commerce businesses are opting to register their companies in Northern Ireland.

1. DAC7 Directive

DAC7 is an EU tax transparency regulation passed in 2021, targeting tax compliance in the digital platform economy (such as e-commerce, short-term rentals, and freelance platforms). It requires all digital platform operators (such as Amazon, eBay, Airbnb, and Uber), regardless of their registration location, to report transaction data (including seller revenue and account details) to EU tax authorities. This measure aims to prevent cross-border tax evasion.

Although Northern Ireland maintains certain trade ties with the EU, its tax system remains under UK jurisdiction.

This means businesses registered in Northern Ireland are not subject to DAC7 reporting requirements to the EU, reducing the need to deal with lengthy compliance requirements.

2. First-Year Low Tax Rate Incentives

Companies registered in Northern Ireland can benefit from the UK’s preferential tax rate scheme in their first year. After registering for UK VAT, businesses can apply for a reduced tax rate of 6.5% in the first year.

3. VAT Exemption for Sales Below £90,000

In the UK, Northern Ireland companies meeting specific conditions can benefit from VAT exemption.

As of 2025, the VAT registration threshold for Northern Ireland companies is £90,000 in annual turnover.

This means that if a company’s annual turnover is below £90,000, it can opt not to register for VAT—allowing it to avoid charging VAT to customers and submitting VAT returns to HMRC.

4. €10,000 Distance Selling Threshold

Under EU VAT reform, each EU country has a distance selling threshold for cross-border e-commerce. If a seller’s annual sales remain below €10,000, they can follow their home country’s VAT rules without needing to register for VAT in the buyer’s country.

The Northern Ireland Protocol aligns Northern Ireland’s VAT rules for goods with those of the EU. This means businesses registered in Northern Ireland can benefit from the EU-wide €10,000 distance selling threshold.

5. Advantage for Amazon Sellers in Northern Ireland

Currently, Amazon does not withhold automatically withhold tax for Northern Ireland-based Amazon accounts, meaning sellers are responsible for their own tax declarations.

The registration, maintenance, and address service costs in Northern Ireland are relatively low compared to other EU countries, making it an effective way for sellers to reduce operational costs.

Which Taxes Do Northern Ireland Businesses Need Pay?

Northern Ireland companies benefit from the UK’s first-year low tax rate incentive, allowing them to apply for a 6.5% tax rate after registering for VAT.

1. Corporation Tax

Corporation tax is levied on a company’s profits. Northern Ireland companies, like those in the rest of the UK, must pay corporation tax.

However, companies engaged in research and development (R&D) may be eligible for R&D tax credits, reducing their overall tax burden.

2. Value Added Tax (VAT)

VAT applies to the sale of goods and services. If a company’s annual sales exceed £90,000, VAT registration is mandatory. If sales are below £90,000, companies can choose whether to register for VAT voluntarily.

The standard VAT rate is 20%, but some goods and services (such as certain foods, children’s clothing, and books) qualify for 5% or 0% VAT rates.

Under the Northern Ireland Protocol, businesses operating in Northern Ireland are assigned an XI VAT registration number, used for trade between Northern Ireland and the EU’s 27 member states.

The XI VAT number consists of the prefix ‘XI’ followed by the company’s UK VAT number.

Process for Registering a Northern Irish Company

Registering a company in Northern Ireland is a similar process to the rest of the UK, and is also managed by Companies House.

1. Choose the Company Type

You must first decide on the type of company to register.

The most common types include:

• Private Limited Company (LTD) – The most common choice
• Unlimited Company
• Branch Office – Suitable if you already have a company registered elsewhere (e.g., England or another country) and wish to establish a branch in Northern Ireland

Most businesses opt for a Private Limited Company (LTD).

2. Choose a Company Name

A unique and legally compliant company name is required. You can check name availability through the Companies House website.

3. Provide a Registered Address

Companies must have a valid registered address in Northern Ireland. This address can be an actual office or a registered agent’s address.

Address Requirements:

• The registered address is used for receiving official government communications.
• It does not have to be the company’s operational address.
• Companies may use a registered agent’s address service (e.g. ‘virtual’ address).

If you already have a Northern Ireland address, TBA can assist with company registration, tax filings, and financial reporting.