Postponed VAT Accounting

A faster way to recover VAT on goods imported to the UK.

These changes will affect your business from 1 January 2021 if you import goods into the UK.

Import VAT is now charged on all goods entering the UK (including goods from EU countries).

Previously import VAT was charged on non-EU imports only.  You may be familiar with the green C79 forms issued by HMRC to enable you to recover the VAT.

To manage this change, HMRC has established a new process called Postponed VAT Accounting (PVA).

You can choose to use PVA if you:

  • Have a UK business that is registered for VAT
  • Import business goods to the UK valued at more than £135 (exclusive of VAT)
  • Elect to use PVA on the customs declaration
  • Use your own VAT registration and EORI numbers on the customs declaration

Let your courier know that you wish to use PVA to import your goods (they should ask before completing a customs declaration).

You won’t have to pay your VAT upfront and recover it at a later date. PVA statements can be downloaded from your government gateway and reported on your VAT Returns using MTD compatible software.

If you wish to discuss any of this further please get in touch 0116 2423400

Blog by Stuart Caney, Bookkeeping Manager

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