Accounting for import VAT on your VAT Return has significant cash flow benefits and will be available permanently. It means youyou’ll declare and recover import VAT on the same VAT Return, rather than payinghaving to pay it upfront when the goods are imported and recoveringrecover it later. It is also called postponed VAT accounting.

The normal rules about what VAT youcan can be reclaimreclaimed as input tax apply. apply.

WhoBefore canyou usemove postponed VAT accountinggoods

If

Who youcan want to account for import VAT on yourtheir VAT Return,Return

If youyour mustbusiness tellis theregistered personfor dealingVAT within customsthe onUK, youryou behalfcan toaccount both:

• selectfor this on your import declaration
• enterVAT your details as the consignee

If someone imports goods on your behalf

YouVAT canReturn havefor agoods personyou or business import goodsinto:

• Great onBritain your(England, behalf.Scotland Forand example,Wales) thisfrom couldanywhere be:
  • aoutside freightthe forwarderUK
  • aNorthern customsIreland agent
  • afrom broker
  • anoutside expressthe operatorUK and EU

  WhenYou someonecan importsalso goodsaccount onfor yourimport behalf,VAT you’llfor needgoods to tell them, in writing, if you wantmove tobetween useGreat postponedBritain VATand accountingNorthern onIreland thosethat imports.are Theydeclared mustinto havea thiscustoms writtenspecial confirmationprocedure, beforewhen they canare proceedremoved withfrom thethat importspecial declaration.procedure.

  If you alreadymove have someone importing goods onbetween yourNorthern behalf,Ireland youand shouldthe contactEU themfind toout tellabout themtrading ifand youmoving wantgoods toin useand postponedout VAT accounting on imports. You should keep a written record of yourNorthern instructions.Ireland.

  When

  You ado suppliernot arrangesneed forany someoneapproval to account for import goodsVAT on your behalfVAT Return.

  Non-established taxable persons

  YouIf canyou alsoare buya goodsnon-established fromtaxable aperson supplieryou’ll whoneed arrangesto forget asomeone personto ordeal businesswith tocustoms importfor andyou, deliverincluding thecompleting goodsyour forcustoms you.declaration.

  YouIf must agree with the supplier how you want to account for import VAT.VAT This is so that they can give the person or business importing the goods written instructions to make the correct entry on theyour importVAT declaration.Return, Theyyou must havetell these written instructions before they can make the importperson declaration.dealing Keepwith acustoms writtenfor record of what you agree with the supplier.

  You’ll also need to giveselect thethis supplier your EORI number.

  The import will appear on your monthly statement in the normal way.

  Check your importcustoms VATdeclaration certificate (C79) and postponedenter VATyour accountdetails statementsas using the Customs Declaration Service, to make sure all your imports are covered. Businesses should check their financial dashboard for their statements.consignee.

  When you can useaccount postponedfor import VAT accountingon your VAT Return

  You can do this if both the following apply:if:

  • the goods you import are for use in your business and you have the right to dispose of them (usually as the owner)
  • you include your VAT registration number on your importcustoms declaration

  If you import goods for business and non-business purposes

  You can account for import VAT on your VAT Returnreturn if you import goods which:

  • will be used for bothfor business and non-business purposes
  • you do not know if the goods will be used for business purposes at the time that you import them

  You cancannot useaccount postponedfor import VAT accountingon whenyour VAT return if you import goods you know will be used solely for non-business purposes, butunless onlyyou ifare you’rea a body that is eligible to reclaim import VAT through a VAT refund scheme (Section 33). When youcompleting complete your importcustoms declaration, you should select thatyou’ll you’rebe making an immediate payment,payment or using a duty deferment account.

  Goods in special procedures

  If you declare goods into a a customs special procedure, you can select that you’ll be accounting for import VAT on your VAT Return when you submit the declaration that removes them into free circulation.circulation Thisfrom applies to the following special procedures:

  • customs warehousing
  • inward processing
  • temporary admission
  • end use
  • outward processing
  • duty suspension

  Excise goods

  FindYou outcan about tradingselect andto movingaccount for import VAT on your VAT Return when you release excise goods for use in andthe outUK of– Northernalso Irelandknown ifas you‘released movefor home consumption’.

  This includes when goods betweenare Northernreleased Irelandfrom andan excise warehouse after being in duty suspense since the EU.point of import.

  ExciseIf you do not know the full customs value of goods

  You can still account for import VAT on your VAT ReturnReturn, wheneven you releaseif exciseyou cannot confirm the full customs value of the goods that you import.

  To do this, you should:

  1. Use a guarantee to cover the amount of VAT that is unknown.
  2. Select that you’ll be accounting for useimport inVAT on your VAT Return for the UK.amount Thisthat is alsoknown.

  When knownyou asmust account for import VAT on your VAT Return

  If you import goods ‘releasedthat are not controlled into Great Britain from Ireland, you must account for homeimport consumption’.VAT on your VAT Return if you either:

  • delay your customs declaration
  • use a simplified customs declaration to make a declaration in your own records

  ThisYou includesmust make sure that when you complete the supplementary declaration you select that you’ll be accounting for import VAT on your VAT Return.

  Using someone to import goods areon releasedyour frombehalf

  If anyou exciseget warehousea afterperson beingor inbusiness dutyto suspensionimport sincegoods on your behalf (such as a freight forwarder, customs agent, broker or fast parcel operator) you will need to tell them how you want to account for import VAT on those imports. This is so they werecan imported.complete the customs declaration.

  Imports

  If deliveredyou byalready Royalhave Mailsomeone Group

  you should contact them to tell them if you want to account for import VAT on your VAT Return on goods you import. You should keep a written record of what is agreed.

  If your business receives goods through the post in consignments ofexceeding more than £135 using Royal Mail Group (including Parcelforce,Parcelforce where they are not acting as ana expressfast parcel operator) you cannotwill not be able to account for import VAT on your VAT Return.

  return. This is because Royal Mail Group offersdo postponednot VATcurrently accountingoffer forthis commercialfacility.

  Get (non-postal)more services,information ifon requestedinternational bypost theusers importer.(Notice 143).

  IfBuying yougoods dofrom nota knowsupplier, thewho fullarranges customsfor valuesomeone ofto import goods on your behalf

  You can stillbuy accountgoods from a supplier who arranges for a person or business, such as a fast parcel operator, to import VATand ondeliver yourthe VATgoods Return,for evenyou.

  You ifmust agree with the supplier how you cannotwant confirmto account for import VAT, so that they can tell them to make the fullappropriate entry on the customs valuedeclaration. ofYou theshould goodskeep thata youwritten import.record of what is agreed.

  ToUnless doyour this,supplier specifically tells them not to, some fast parcel operators will select the option for you should:to account for import VAT on your VAT Return.

  1. UseYour asupplier guarantee towill covertell theyou amountabout ofthis VATwhen thatthey isask unknown.you for your Economic Operator Registration and Identification (EORI) or VAT registration number.

  2. SelectYou thatwill you’llneed beto accountingtell your supplier if you do not want to account for import VAT on your VAT ReturnReturn.

     The forimport thewill amountappear thaton isyour known.monthly statement in the normal way.

  How to complete your customs declaration to useaccount postponedfor import VAT accounting on your importVAT declarationReturn

  When completing your importcustoms declaration, you can select to account for import VAT on your VAT Return. You cannot change how you want to account for import VAT on your importcustoms declaration once you’veit’s submitted it.submitted.

  You need to enter your VAT registration number at header level in Datadata Elementelement 3/40 (you should not use method of payment G in Datadata Elementelement 4/8).

  VAT will be recorded against your your EORI number. Thisand will be at declaration level only.

  If you act on behalf of someone else

  If you’ve been authorised to act on behalf of your client, you must use their their EORI number number or VAT registration number on the importcustoms declaration.

  If you import goods in consignments valued at £135 or less

  There are different rules for the treatment of goods in consignments valued at £135 or less.

  Find out about the treatment of VAT for imported goods sold:

  • to customers in the UK using online marketplaces
  • directly to customers in the UK

  These rules do not apply to the import of excise goods. You can choose to account for import VAT on your VAT Return for the import of consignments of excise goods of any value.

  If you import commercial goods (merchandise in baggage) into Great Britain or Northern Ireland

  If you’reyou are importing commercial goods into Great Britain or Northern Ireland in your personal baggage or private motor vehicle and want to account for import VAT on your VAT return, you will need to make a full customs declaration.

  If you are eligible to make a simple online declaration instead and choose to do so, you will not be able to account for import VAT on your VAT Return.return.

  Find out more about:

  • bringing commercial goods into Great Britain in your baggage
  • bringing commercial goods into Northern Ireland in your baggage

  What you need to do next

  If you usehave postponedselected VATthat you are accounting for import VAT on your fullVAT importReturn declaration,on you’llyour customs declaration you will need to to account for import VAT when you complete your VAT Return.