Guidance

Complete your VAT Return to account for import VAT

Find out how to account for import VAT on your VAT Return if you're using postponed VAT accounting.

HMRC is aware of the problems some importers are having when trying to access their monthly VAT statements.

If you cannot access your statement or you’re having problems when viewing your statement, you should follow the guidance on how to complete a VAT Return if you’re having problems with your monthly statements.statements.

As long as you take reasonable care to follow the guidance, there will be no penalty for errors.

Overview

If you’re a UK VAT-registered business and account for import VAT on your return, you’ll need:

  • details of any customs entries you’ve made in your own records
  • copies of your monthly postponed import VAT statement (when available)

Unless you’ve delayed your import declaration,declaration, each of your statements will show the total import VAT postponed for the previous month.

Find out more about how to get a postponed import VAT statement and how to understand and use your statements.

How to complete your VAT Return

You must account for postponed import VAT on your return, for the accounting period which covers the date you imported the goods.

The normal rules apply for what VAT can be reclaimed as input tax and your monthly statement will contain the information to support your claim.

Box 1

Include the VAT due in this period on imports accounted for through postponed VAT accounting. You’ll be able to get this information from your online monthly statement, or you must estimate the amount if you’ve delayed your import declaration and do not have a statement.

Box 4

Include the VAT reclaimed in this period on imports accounted for through postponed VAT accounting. You must estimate the amount if you have delayed your import declaration and do not have a statement.

Box 7

Include the total value of all imports of goods in this period, not including any VAT.

Find more information about how to fill in and submit your VAT Return (VAT Notice 700/12).

How to adjust errors for import VAT

If you have accounted for import VAT on your VAT Return and later find out the amount has changed or is incorrect you must either:

  • amend any nil net tax errors on your next VAT Return (where the import VAT adjustment in box 1 will be equal to the input tax claim in box 4)
  • follow the error correction procedures

You should continue to use existing methods for any over or underpayments of customs duties. You must not include import VAT in any of these adjustments to HMRC if you have used postponed VAT accounting for those declarations.

If you use a VAT accounting scheme

Flat Rate Scheme for small businesses

If you’re using the Flat Rate Scheme for small businesses and are accounting for import VAT on your VAT Return, for VAT Return periods starting before 1 June 2022, you must add the value of the imported goods to the total of all your supplies, before you do the scheme calculation.

For VAT Return periods starting on or after 1 June 2022, you should not include import VAT accounted for using postponed VAT accounting in your flat rate turnover. The VAT due on any imports should be added to box 1 of the return after you have completed your Flat Rate Scheme calculation.

Find more information about working out the VAT due on sales in VAT Notice 700/12, section 4.1.

VAT Cash Accounting Scheme

You cannot use the VAT Cash Accounting Scheme for goods you import or remove from a customs warehouse.

If you delay your import declaration

You must account for import VAT on your VAT Return if your goods are not controlled and either:

  • you delayed declarations for goods brought into Great Britain (England, Scotland and Wales) from the EU between 1 January 2021 and 31 December 2021
  • you delay declarations for goods you bring into Great Britain from Ireland

To complete the boxes on your return, you’ll need to estimate the import VAT due from your records of imported goods.

When you submit your delayed declaration, you must select that you’re accounting for your VAT on your return. Your next online monthly statement will show the amount of import VAT due on that declaration. You’ll then be able to:

  • adjust your estimate
  • account for any difference on your next return

How to estimate import VAT

You should make your estimate as accurate as possible, based on the amount you’ve paid for the goods and any other costs you agreed to cover. For example:

  • packaging
  • transport
  • insurance

Your estimate can include any customs duties due on the goods, but it does not have to do so.

After you submit your declaration, your next monthly statement will reflect the actual import VAT due. This amount will take into account import VAT due on any additional customs duties.

You’ll need to make a final adjustment to reflect the difference from your estimate and account for this on your next return.

If you’re a VAT group representative member

You’ll need to collect copies of each member’s import VAT statements, so you can complete the VAT Return for the whole group.

Transactions or movements of goods on or after the transition period

Goods arriving into Great Britain from an EU country, on or after the end of the transition period, will be subject to UK customs procedures and import duties (including import VAT), in the same way as goods imported from outside of the EU.

If the movement of your goods started before the end of the transition period, and the goods arrived on or after 1 January 2021, you’ll need to check how the VAT should be accounted for.

How to complete a VAT Return if you’re having problems with your monthly statements

If you cannot access your statements

We are aware that some importers had problems accessing March 2022 statements. The issue has now been identified and resolved. March 2022 statements should be available to download. If you are still experiencing problems with your statements, contact the imports and exports helpline.

You can estimate your import VAT figures for the months you cannot access statements for.

Your estimate should be as accurate as possible, based on the amount you’ve paid for the goods and any other costs you agreed to cover. For example:

  • packaging
  • transport
  • insurance

Your estimate can include any customs duties due on the goods, but it does not have to do so.

Once you can access the service and get your statement, you’ll need to make an adjustment to reflect the difference from your estimate, and account for this on your next return.

Check for issues with your June 2022 statements

There has been a technical issue with statements produced in June 2022. This means your import VAT figures may not have been correct. HMRC has fixed the issue and issued replacement statements.

If you downloaded your June 2022 statement before 13 July 2022, you should not use that statement to complete your VAT Return. To access your replacement statement, visit the statement page on your dashboard and download the version that has replaced the older version. Your new statement will have a publication date of 18 or 19 July.

If you use simplified declarations for imports

If you’re authorised to use simplified declarations for imports, you have a few days at the beginning of each month to submit supplementary declarations for goods imported in the previous month.

HMRC has identified an issue where these entries are not being allocated to the correct monthly statement. We’re actively seeking a solution to this problem and will give an update as soon as possible. In the meantime, you have 2 options:

  • you can use the figures on your import VAT statements to complete your VAT Return
  • if you can identify the affected entries, you can reallocate them to the correct monthly statement and use these figures to complete your VAT Return

Check your previous VAT Returns if you had problems with your monthly statements

FollowIf there were errors on your January and February statements, you should check you completed your quarter 1 returns using the VATfollowing correctionsguidance.

The guidanceerrors ifwere rectified on the replacement statements produced in April 2021.

If you find you’ve made a mistake or did not follow this guidance, you must follow the VAT corrections guidance.

Quarterly return ending January 2021

When completing your return for April 2021, you should revisit the January 2021 statement. You may see up to 3 statements for that month.

You will need to compare your estimate with the figures in the January 2021 statement with an April 2021 production date on each page. You should make any change on your April 2021 return, if necessary.

Quarterly return ending February 2021

Complete your return using the figures available from the January 2021 and February 2021 statements. The statements for February 2021 are showing as January 2021 in error. However, they will only have February 2021 entries and a March 2021 production date on each page.

Do not include any entries on the January 2021 statement which are duplicated on the February 2021 statement. The total postponed import VAT for the 2 months will be correct once the duplicates have been excluded.

Further versions of both the January 2021 and February 2021 statements will be produced early April 2021. This will remove the duplicate entries and will amend the ‘month’ heading.

You can make a change on your next return, if the figures on these statements are different to those that you included on your VAT Return.

Quarterly return ending March 2021

Complete your return using the most recent version of the statements that have been produced for each of the months in this pagequarter. correctly.In most cases there only be one statement headed February 2021. You will see up to 3 statements for January 2021, so should use the one showing an April 2021 production date.

Monthly return ending February 2021

Complete your return using the figures in the statement covering the February 2021 entries. The statement will be shown as January 2021 but will have February 2021 entries, with a March 2021 production date on each page.

Monthly return ending March 2021

Use the most recent statements to review your January 2021 and February 2021 returns. In most cases there should be one statement headed February 2021. For January 2021, you will see up to 3 statements, so you should use the one showing an April 2021 production date.

Published 27 July 2020
Last updated 522 AugustJuly 2022 + show all updates
  1. Information on checking your previous VAT Returns if you had problems with your monthly statements has been updated.

  2. If you're having problems with your June 2022 statements we have added information to confirm that if you downloaded your June 2022 statement before 13 July 2022, you should not use that statement to complete your VAT Return. To access your replacement statement, go to the statement page on your dashboard and download the version that has replaced the older version. Your new statement will have a publication date of 18 or 19 July.

  3. If you're having problems with your June 2022 statements we have added information to confirm that you should not download or use figures on statements that were published from 4 July 2022 up to and including 8 July 2022.

  4. Information has been added about some technical problems with postponed import VAT statements for June 2022.

  5. The problem with April 2022 postponed VAT statements has now been fixed. Users can now access replacement statements on their dashboard.

  6. Information has been added about some technical problems with postponed VAT statements for April 2022.

  7. The issue with March 2022 postponed import VAT statements not displaying for some users has now been resolved.

  8. Information has been added to the 'How to complete a VAT Return if you're having problems with your monthly statements' section for importers who have been having issues accessing their March 2022 statements.

  9. From 1 June 2022, businesses registered under the Flat Rate Scheme should no longer include imports accounted for under postponed VAT accounting within their flat rate turnover. These should be accounted for separately, outside of the Flat Rate Scheme.

  10. Existing arrangements for customs checks on goods from Ireland will continue after 1 January 2022. Changes have been made to the "If you delay your customs declaration" and "Transactions or movement of goods on or after transition period sections".

  11. Information about how to adjust errors for import VAT has been added.

  12. Information about how to complete a VAT return if you're having problems with your monthly statements, when you're authorised to use simplified declarations for imports has been added.

  13. Information about problems accessing January 2021 and February 2021 statements and completing your monthly and quarterly VAT Returns has been added.

  14. The end date when you must account for import VAT on your VAT Return if you delay your customs declaration or use a simplified customs declaration has been changed from 30 June 2021 to 31 December 2021.

  15. The information about January and February statements has been updated.

  16. Information about February entries on your January statement has been added.

  17. Information has been added to explain how to complete your return if you cannot download your postponed import VAT statements. In addition, a new section 'If you're a VAT group representative' has been added to the page.

  18. New sections 'If you use a VAT Accounting Scheme' and 'Transactions or movements of goods which span the end of the transition period' have been added to the page.

  19. Information on getting access to your postponed import VAT statement has been added.

  20. Details on how to estimate your import VAT on your VAT return has been added. Additional guidance on your statements and how long they will be available has been added.

  21. Welsh translation added.

  22. First published.