Postponed VAT Accounting coming soon

UK Import VAT Accounting changes

The UK Government has confirmed UK Import Postponed VAT Accounting (PVA) is to be introduced for all imports on 1 January 2021. This measure was announced in the 11 March 2020 Budget.

At the time of writing the 2019 HMRC guidance on postponed accounting has not  been updated with the details, so for now we are limited to the couple of paragraphs mentioned in the Budget document.

Import VAT Postponed Accounting

When will Postponed VAT Accounting be introduced ?

Postponed Accounting for Import VAT (PVA) is available from 1 January 2021.

Background Postponed VAT Accounting

Postponed Accounting for Import VAT has long been discussed and lobbied for in UK trade and tax circles.  In 2019 a UK scheme was  welcomed as part of HMRC announcements regarding Brexit Day 1 No Deal, but was later withdrawn.

As recently as early February Michael Gove told industry to prepare for UK import processes without special easements. We wrote about that here. He said trade should expect full import procedures from all origins from January 2021. The inference drawn from this was that all easements announced in 2019  were off the table. The assumption was post accounting for VAT fell away also. However the March 2020 Budget has clearly revived the scheme and it will operate from 1 January 2021.

If you are interested in the scheme as it stood in 2019 HMRC guidance remains available. It gives details on how PVA was intended to operate and for now we assume  it still describes how PVA will work in 2021 –  watch this space for updates. The HMRC site has not been updated to reflect the 11 March 2020 budget announcement

For more information about Postponed VAT Accounting and how it will affect your business contact us here at Clearlight Customs

, , , , , ,

Related Posts

Customs Unions – A Quick Summary

Customs Unions are a hot topic in the mainstream media this week, both Government and opposition have commented in recent days. We saw a…
Clearlight Customs – UK Import Export Customs Advisors

New Post-Brexit VAT Burden ?

This weekend saw the British Retail Consortium (BRC ) go on the offensive about additional VAT charges when the UK leaves the EU. They…
Clearlight Customs – UK Import Export Customs Advisors

Happy Valentine’s Day

Happy Valentine’s Day Every February 14, Valentine’s day, across the world, gifts are exchanged between loved ones Valentine’s day is fast approaching, what surprise…
Clearlight Customs – UK Import Export Customs Advisors

Customs,Borders & Brexit.

A decisive step? 19 March 2018. UK and EU announced at a Davis-Barnier press conference that a “decisive step” had been taken in the…
Clearlight Customs – UK Import Export Customs Advisors