Import VAT in the UK can be deferred under Postponed VAT Accounting — it is accounted for on the VAT return instead of being paid at the border.
Contents
In brief — what you'll learn
- ✓ How to prepare the process and documents
- ✓ How the declaration and control work
- ✓ How to maintain compliance and settlements
How to prepare the process and documents
Import VAT on clearance in the United Kingdom can be deferred under the Postponed VAT Accounting mechanism — instead of paying the tax at the point of clearance, the importer accounts for it on their periodic VAT return. The condition is indicating the correct code on the declaration in the CDS system and holding an active UK VAT registration. This allows the goods to be released without having to tie up cash to cover the tax before the sale.
Division of responsibility between the parties
The minimum data set for the declaration
See the full range of UK customs clearance services.
How the declaration and control work
An effective customs declaration with VAT deferral requires the data in the CDS system to be consistent with the transport documents and the invoice. This keeps the process repeatable and auditable at every stage of an official control.
Operational stages from advance notice to release
The most common risk points and how to limit them
How to maintain compliance and settlements
Distinguishing responsibility between the importer and the customs representative decides who generates the monthly PVA statement on the HMRC portal and shows the VAT amount on the tax return. Proper record-keeping is the basis of an effective defence during a control.
Record-keeping, corrections and evidence of due diligence
Complete documentation should include: customs declarations (MRN), monthly PVA statements downloaded from the HMRC account, commercial invoices, transport documents and correspondence with the customs agent. Corrections to VAT returns relating to deferred tax should be carried out in line with the procedure set out in VAT Notice 700/12, and every correction should be accompanied by a note explaining the reason for the change and kept for a minimum of 6 years.
Working with a customs agency and internal audit
A customs agency acting as an indirect representative takes on part of the responsibility for the accuracy of the declaration, so the cooperation agreement should specify the scope of the power of attorney granted and the division of duties regarding PVA data. A regular internal audit — at least once a quarter — makes it possible to catch discrepancies between the import register and the HMRC statements before they become the subject of an official control.
Summary
In summary: on the topic of 'Can you defer VAT?' the most important thing is to run the process according to current official guidance, with a clear division of responsibility and documentation of every decision. This approach reduces delays, cuts the number of corrections and makes it easier to defend the settlements during an audit. If any requirement raises doubts, check the current GOV.UK guidance or consult an experienced customs agency before submitting a declaration.
Legal basis and sources
- HMRC: UK Trade Tariff (UI)
- HMRC: Check a UK EORI Number API
- GOV.UK: Goods Vehicle Movement Service guidance
If the regulations or system notices are updated, check the current GOV.UK or KAS guidance before submitting a declaration.
Frequently asked questions
Can every importer into the United Kingdom use VAT deferral under PVA?
Yes, the Postponed VAT Accounting mechanism is available to any entity registered for VAT in the United Kingdom and holding an active EORI number. The condition is correctly marking the customs declaration with the PVA procedure code and regularly downloading the monthly statements from the HMRC Online account and including them on the VAT return.
How do you correctly account for deferred import VAT on a UK VAT return?
The VAT amount on the import is shown at the same time in Box 1 (output VAT) and Box 4 (input VAT) of the VAT return for the period in which the goods were cleared. The entry is based on the monthly PVA statement downloaded from the HMRC service — not the overseas seller's invoice.
What happens if the PVA marking is missing from a customs declaration?
A missing PVA marking means the import VAT will be collected at the point of customs clearance by HMRC and will appear as an immediate payment obligation. There is no way to switch to the deferral mechanism retrospectively — the tax must be paid, or a customs security lodged, before the goods are released.
Can a Polish company exporting to the UK use PVA without a customs representative?
A Polish company with no establishment in the United Kingdom cannot file a customs declaration in the UK itself — it must act through an experienced customs agent or an indirect representative. The customs agency can only apply PVA when the recipient of the goods in the UK holds an EORI number and is registered for VAT in the United Kingdom.
How long should documents relating to deferred import VAT be kept?
Under HMRC requirements, customs and tax documents — including import declarations (MRN), PVA statements and commercial invoices — must be kept for a minimum of 6 years from the date of the declaration. This obligation applies both to the importer and to a customs agent acting as an indirect representative under a granted power of attorney.
Related guides
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