Customs Declarations for EU Trade – Clearlight Brokerage Limited

UK Import VAT Accounting Changes

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.

At the time of writing the 2019 HMRC guidance on postponed accounting has not  been updated with the details however the Budget document   makes the change clear ( Page 95)

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  However as the chance of no deal receded it was withdrawn.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

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Customs Declarations for EU Trade – Clearlight Brokerage Limited

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