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 VAT return as output and input tax at the same time — with full recovery, this means zero cash impact. For Polish companies importing goods into the UK, 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
• No HMRC approval needed — UK VAT registration and the VAT number on the import declaration are enough (GOV.UK)

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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
• Right to recover VAT — not a condition for using PVA, but it determines the cash effect: input tax is recovered on the return under the normal rules

PVA does NOT apply to:

• Companies not registered for VAT in the UK
• Private imports (individuals)
• Goods on which no import VAT is charged (e.g. zero-rated goods) — there is nothing to postpone
• 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 indicates PVA by entering the importer's VAT number in data element 3/40 of the CDS declaration (the method of payment field, DE 4/8, is left blank; the former payment code 'G' is no longer used). The choice cannot be changed after the declaration is submitted. If an agent or forwarder makes the declaration for you, you must first give them written confirmation that you want to use PVA (GOV.UK).
3. Download your Monthly PVA Statement — HMRC generates a Monthly Postponed Import VAT Statement, available on the HMRC online portal. Statements are usually available by the 10th working day of the month following the month of import and can only be accessed for 6 months from publication (GOV.UK).
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 clearance and only recover it once your VAT return is settled. 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. A non-UK business that is not registered for UK VAT cannot use PVA. A business without a UK establishment must also appoint a customs representative, who selects PVA on the import declaration (GOV.UK).

UK VAT registration rules (GOV.UK: Register for VAT):

• A business based outside the UK (e.g. a Polish company) must register for UK VAT when it makes any supplies of goods or services in the UK (or expects to within 30 days) — regardless of turnover; the threshold does not apply
• A UK-based business registers once its taxable turnover exceeds £90,000 in a 12-month period

If the importer has no VAT GB number, import VAT must be paid at clearance (directly or via a deferment account), and PVA is not available.

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 lets you defer payment of duty and import VAT for a whole calendar month and pay them in a single Direct Debit in the middle of the following month (GOV.UK). Payment is only postponed. PVA requires no deferment account — VAT is settled purely on the VAT return. Both mechanisms can be used together: a DDA for duty, PVA for VAT.
• PVA vs. Regime 42 — customs procedure 42 is an EU procedure: goods are released for free circulation in one EU member state with import VAT exemption because they are immediately supplied intra-EU to another member state, where the customer accounts for VAT. It concerns imports into the EU. PVA applies only to UK VAT, on imports into the UK.
• 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.

If you are just starting to import into the UK, see also first customs declaration – a guide for new importers and a duty deferment account for paying customs duty to HMRC.

7. Import handling with PVA

The scope and cost of import clearance using Postponed VAT Accounting depend on the type of goods, the number of tariff lines and the complexity of the documentation. How we quote is explained on How much does UK customs clearance cost. For help with UK VAT registration or setting up PVA, get in touch.

Frequently asked questions