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Postponed VAT Accounting From 1st January 2022 - Ligentia | Global Logistics Solutions
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Postponed VAT Accounting From 1st January 2022

HMRC have provided new information about Postponed VAT Accounting (PVA) and regarding the support and services they will be delivering to help you when you import and export.

The benefits and where you can find out more

From 1st January 2022 you can continue to use Postponed VAT Accounting (PVA) on all customs declarations that require you to account for import VAT, including supplementary declarations, except when HMRC have told you otherwise.

PVA has already provided significant cash flow benefits for thousands of our customers, and we expect that most businesses will choose to use it. This is because PVA allows UK VAT-registered importers to account for and recover import VAT on their VAT return, rather than paying the import VAT when the goods are imported.

You can use PVA for goods you’re importing from the EU or other countries. And PVA is not a temporary process, so you will be able to continue to use it following the end of staged customs controls.

There isn’t an application process, but you do need to confirm in your customs declaration that you are using PVA, and you’ll need to make sure that the person making your VAT declarations is also prepared.

Please note that Import PVA is only available to fully UK VAT registered companies, and that HMRC can prohibit PVA, and do, for businesses they have issues with i.e. businesses with a poor compliance record.

If using the Customs Handling of Import and Export Freight (CHIEF) system

On your declaration, enter:

  • your EORI number starting with ‘GB’ which includes your VAT registration number into box 8 (Header Consignee), or, if applicable, your VAT registration number in box 44h (Registered Consignee)
  • ‘G’ (Postponed accounting for VAT approved) as the method of payment in Box 47e.

If using the Customs Declaration Service (CDS)

On your declaration, enter:

  • your VAT registration number at header level in data element 3/40.

Please note that VAT will be recorded against your EORI and will be at declaration level only.

If using someone else to do your declarations

If someone else is doing your customs declarations for you such as a freight forwarder, customs agent, broker or fast parcel operator you need to tell them that you want to use PVA to account for import VAT on the imported goods. They can then complete the customs declaration correctly on your behalf, and you should keep a written record of what is agreed.

For more information around new support and services offered by HMRC, please visit the GOV.UK website.

Click here to find out more about the services we provide our customers.

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