UK Import VAT Accounting changes
Postponed VAT Accounting (PVA) will be introduced for UK imports on 1 January 2021. The change was confirmed in the 11 March Budget.
When do changes take place ?
Postponed Accounting for VAT (PVA) is available to importers from 1 January 2021.During the remainder of the transition period the existing import VAT arrangements remain.
Background to PVA
Postponed Accounting for Import VAT (PVA) has been sought for in UK importers for several years. In 2019 a scheme was announced as part of a package of easements offered to trade ahead of a possible Brexit Day 1 No Deal. However as the chance of no deal receded it was withdrawn.
As recently as February 2020 government warned industry to prepare for UK import processes without easements. We wrote about that here. The expectation was that all easements announced in 2019 were off the table including PVA. The situation has now changed and the March Budget announcement says it will be available from 2021.
For those interested in reading more about how the scheme was intended to operate the 2019 HMRC guidance here is available. The HMRC site has not been updated to reflect the 11 March 2020 budget announcement so watch for further updates on this topic.
Need help ?
For more information about Postponed VAT Accounting and how it will affect your business contact us here at Clearlight Brokerage
For support with a wide range of customs, import , export and training needs contact our sister company Clearlight Customs