Postponed VAT Accounting UK — what is it and how does it work? A guide for Polish companies

Postponed VAT Accounting (PVA) is a mechanism introduced by the UK after Brexit that lets importers registered for VAT in the UK defer payment of import VAT. Instead of paying VAT in cash at the border, a company accounts for it on its monthly VAT return as output and input tax at the same time — meaning zero cash impact. For Polish companies importing from the UK into the EU, understanding PVA is key to optimising cash flow. This guide explains how PVA works, who can use it, and how to apply it correctly in import practice in 2026.

Import clearance using Postponed VAT Accounting is handled by Easy Clearance — UK customs agency.

1. What is Postponed VAT Accounting (PVA)?

PVA is an HMRC mechanism that allows importers registered for VAT in the UK to account for import VAT flexibly. Instead of physically paying VAT at the border, the importer declares it on their standard VAT return — simultaneously as output tax and input tax. Where full VAT recovery applies, the net effect is zero — the tax cancels itself out.

PVA became available from 1 January 2021 for all importers holding an active UK VAT number (VAT GB). Its introduction was HMRC's direct response to Brexit — previously, goods from the EU entered the UK without customs clearance, whereas now every shipment requires formal import clearance and VAT accounting.

Key features of PVA:

• Import into the UK without physically paying VAT at the border
• Import VAT accounted for on the VAT return — simultaneously as input tax and output tax
• Cash effect: with full VAT recovery — zero cash cost
• Available automatically — no separate registration required, a VAT GB number is enough

2. Who can use PVA?

To use Postponed VAT Accounting, an importer must meet the following requirements:

• UK VAT registration — the company must hold an active VAT GB number (format: GB + 9 digits)
• Importing goods into the UK — PVA applies only to goods physically imported into the United Kingdom
• VAT-taxable business activity — the goods must be intended for use in a business activity that carries the right to recover VAT

PVA does NOT apply to:

• Companies not registered for VAT in the UK
• Private imports (individuals)
• Goods exempt from VAT (e.g. certain food items, medicines)
• Imports carried out by a Polish company without a VAT GB registration — if a Polish company imports in its own name without a VAT GB number, PVA is not available

3. How to enable PVA — step by step

Using Postponed VAT Accounting requires the customs clearance process to be set up correctly. Here are the steps:

1. Make sure you have a VAT GB number — registration is done via the HMRC portal (VAT Registration). Without an active VAT GB number you cannot use PVA.
2. Mark PVA on the import declaration — on the import declaration, the customs agent must select the Postponed VAT Accounting option. The Customs Procedure Code must include the PVA indicator (the field responsible for the VAT accounting method).
3. Download your Monthly PVA Statement — HMRC generates a Monthly Postponed Import VAT Statement, available on the HMRC online portal. Statements appear by the 25th day of the month following the month of import.
4. Transfer the figures to your VAT return — enter the VAT amount from the statement into your VAT return: Box 1 (output tax) and Box 4 (input tax to recover). Include the import value in Box 7 (total value of purchases).
5. Submit the VAT return to HMRC — the tax cancels itself out. No cash impact where full VAT recovery applies.

4. PVA vs the traditional method — comparison

The table below illustrates the difference between the traditional method (paying VAT at the border) and Postponed VAT Accounting:

Practical example: You import goods worth £100,000, with 20% VAT = £20,000.

• Without PVA — you pay £20,000 at the border and wait up to 3 months for a refund or offset. Your working capital is tied up.
• With PVA — the £20,000 never leaves your account. VAT is settled internally on the return. The cash stays available to the business.

5. Can Polish companies use PVA?

Yes — provided the Polish company is registered for VAT in the UK and holds an active VAT GB number. Many Polish companies exporting to the UK hold, or should hold, a VAT GB registration, especially if their annual turnover from the UK exceeds the registration threshold.

VAT GB registration is required (and PVA therefore becomes available) when:

• You sell goods into the UK above £90,000/year (the UK VAT registration threshold from 2024)
• You import goods into the UK in your own name as the importer of record
• You run a warehouse, fulfilment centre or other physical operation in the UK

If a Polish company does not have a VAT GB number, it can use a customs agent as a fiscal importer — however, VAT will then be accounted for by the party holding the active VAT GB number, not by the company itself.

6. PVA vs other mechanisms — the differences

PVA is often confused with other customs and tax mechanisms. Here are the key differences:

• PVA vs. Duty Deferment Account (DDA) — a DDA defers both duty and import VAT, with funds paid into a special HMRC bank account. PVA, by contrast, requires no bank account or financial guarantee — VAT is settled purely on the return. Both mechanisms can be used together: a DDA for duty, PVA for VAT.
• PVA vs. Regime 42 — Regime 42 is a procedure for imports through the UK into the EU, where VAT is accounted for in the destination EU country rather than in the UK. PVA applies only to UK VAT and to final imports into the UK — not to transit into the EU.
• PVA vs. Import VAT Certificate (C79) — the C79 is the old HMRC certificate confirming import VAT payment, used before PVA was introduced. Since 2021, a C79 is only issued when the importer does NOT use PVA and physically pays VAT at the border. If you use PVA, your source document is the Monthly PVA Statement, not the C79.

You can find out more about customs procedures in our article on UK customs basics.

7. Pricing for import handling with PVA

The cost of import clearance using Postponed VAT Accounting depends on the type of goods, the number of tariff lines, and the complexity of the documentation:

• Import clearance with PVA: from £45 to £150
• UK VAT advice (registration, procedure consultation): quoted individually

The ranges given are indicative — an exact quote is provided once documents have been submitted.

You can find our detailed clearance price list on the UK customs clearance pricing page.

FAQ — Frequently asked questions about PVA