Can you defer import VAT in the UK? Postponed VAT Accounting

import VAT on imports into Great Britain can be postponed using Postponed VAT Accounting: instead of paying the tax at clearance, the importer declares and recovers it on the same VAT Return. No approval is needed, but the business must be VAT-registered in the UK (gov.uk).

When you can account for import VAT on your return

• The business is VAT-registered in the UK and its VAT number is on the import declaration.
• The goods are for use in the business and the business has the right to dispose of them (usually as owner).
• The goods are imported into Great Britain from outside the UK (into Northern Ireland, from outside the UK and the EU).

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How to use PVA on the declaration

PVA is not automatic — you select it when completing the import declaration in CDS. The importer's VAT number is entered at header level in data element 3/40, and method of payment G is not used in data element 4/8. The choice cannot be changed after the declaration is submitted. If an agent or freight forwarder makes the declaration, you must tell them in writing that you want to account for the VAT on your return; they need this confirmation before submitting the declaration.

A business with no UK establishment must appoint someone to handle customs, who makes the declaration, selects the PVA option and enters the business's details as consignee (see an indirect representative). PVA is not available for, among others, Royal Mail consignments over £135.

How to show postponed VAT on the VAT Return

Take the figures from the monthly postponed import VAT statement available online. Put the VAT due on PVA imports in Box 1, the same VAT as input tax in Box 4, and the total value of imported goods excluding VAT in Box 7. If you do not have a statement yet (for example with a delayed declaration), you must estimate the amount and adjust the difference on your next return (gov.uk).

If an agent made the declaration, ask them to confirm that the VAT was allocated to the correct EORI number, and check the monthly postponed import VAT statement in the Customs Declaration Service. If you do not use PVA, you pay the VAT at clearance or through a deferment account — see duty deferment account and recovering import VAT.

Documents and record-keeping

Keep the import declarations (MRN), monthly PVA statements, commercial invoices and transport documents. HMRC requires records of goods declared to it to be kept for 4 years, and VAT records for at least 6 years (gov.uk — Archiving your trade documents).

Contact us if you want to establish whether PVA is right for your shipments; see also our UK customs clearance services.

Frequently asked questions