How to Settle VAT on Import?

How to Settle VAT on Import?

Importing goods from outside the EU, including from the United Kingdom after Brexit, brings an obligation to settle import VAT — normally paid into a customs account or, if the conditions under Article 33a of the VAT Act are met, shown directly in the tax return without an actual payment. The basis for settlement is a customs declaration filed in the AIS/PUESC system with the correct EORI number and the goods' HS code. The choice of settlement method affects the company's cash flow, so it is worth deciding on it before the first clearance.

Contents
  1. How to prepare the process and the documents
  2. How the declaration and inspection work
  3. How to maintain compliance and settlements
  4. Summary

In brief — what you will learn

  • ✓ How to prepare the process and the documents
  • ✓ How the declaration and inspection work
  • ✓ How to maintain compliance and settlements

How to prepare the process and the documents

Split of responsibilities between the parties

Minimum data set for the declaration

For settling VAT on import, it is essential to distinguish the responsibilities between the importer, the exporter and the customs representative, because this determines the scope of data passed to the customs office. The minimum set includes: the importer's EORI number, the CN/HS tariff code, the customs value of the goods, the country of origin, and transport documents confirming the border crossing.

Full customs handling on the Poland–UK route is provided by a UK customs agency.

How the declaration and inspection work

Operational stages from pre-notification to release

The most common risk points and how to limit them

It is worth preparing an internal checklist linking documentation requirements to the responsibilities of logistics and accounting. The most common risk points include: incorrect tariff classification, an understated customs value, a missing document confirming preferential origin of the goods, and inconsistent data between the invoice and the CMR transport document.

How to maintain compliance and settlements

Record-keeping, corrections and evidence of due diligence

Documentation for every clearance should be kept for at least 5 years, in a form allowing quick access during a tax or customs inspection. Evidence of due diligence includes: correspondence with the customs agent, confirmation that declarations were filed in PUESC, documents confirming the customs value, and certificates of origin for the goods.

Working with a customs agency and internal audit

Regular internal reviews help catch systemic classification errors before they lead to tax arrears. The customs agency should provide post-clearance reports flagging discrepancies between the declared and actual customs value, allowing prompt correction and preventing interest liabilities to the tax and customs office from building up.

Import VAT rates and the Postponed VAT Accounting procedure change — check the current HMRC guidance before submitting a declaration.

Summary

In summary: for 'How to settle VAT on import?', the key is to run the process according to current official guidance, with a clear split of responsibilities and documentation of every decision. This approach reduces delays, cuts the number of corrections and makes it easier to defend the settlements during an inspection. If any requirement is unclear, check the current guidance on Podatki.gov.pl or consult an experienced customs agency.

Disclaimer: The information in this article is general and educational in nature. Customs rules change — before submitting a declaration, check the current guidance on GOV.UK or KAS.

Legal basis and sources

If the rules or system notices are updated, check the current GOV.UK or KAS guidance before submitting a declaration.

Frequently asked questions

Who is required to settle VAT when importing goods from the United Kingdom?

The obligation to settle import VAT rests with the importer — the entity named as the recipient in the customs declaration. If the importer uses a customs representative acting directly (in the importer's own name), tax liability remains with the importer. Under indirect representation, the customs agent is jointly and severally liable for the customs debt.

How is the VAT taxable base calculated on import?

The VAT taxable base on import is the customs value of the goods increased by the duty due, any additional charges, and transport and insurance costs to the first place of destination in the EU. The customs value is established using Method 1 (transaction value) or alternative methods when the price does not reflect market value.

Can import VAT be deducted, and in which return?

Yes, an active VAT payer can deduct import VAT in the JPK_V7M or JPK_V7K return for the period in which the tax obligation arose, or in one of the three following settlement periods. The basis for the deduction is the SAD document or the IE-599 message from the PUESC system confirming that the goods were placed under the release-for-free-circulation procedure.

How does Procedure 42 differ from a standard import in terms of VAT?

Customs Procedure 42 (Regime 42) allows an exemption from import VAT in the country of entry to the EU when the goods are destined for another member state. VAT is then settled in the country of destination by the buyer as part of an intra-Community acquisition of goods. This requires the buyer's valid EU VAT number to be provided already at the time of customs clearance.

What documents are needed to correctly settle VAT on import?

Correctly settling VAT on import requires: a commercial invoice with the transaction value, a transport document (CMR, AWB or bill of lading), a certificate of origin for the goods, the SAD document or the IE-599 message from the PUESC system, and any permits or licences required for the given category of goods.

Agencja Celna UK team

Written by a customs agency registered with CDS (UK EORI), based on gov.uk, HMRC, the EU customs tariff (TARIC) and Polish law. This article is for information only — check the current rules before clearance or ask us about your situation.

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