• Skip to primary navigation
  • Skip to main content
  • Skip to footer

Top notice bar

Call us on 08000 388799

Avanti Tax Accountants HomepageAvanti Tax Accountants

Bookkeeping, Accountancy and Taxation services

  • Home
  • About Us
  • Our Services
    • Bookkeeping & Accountancy
    • Corporation & Personal Tax
    • Payroll & CIS
    • Company Secretarial Bureau
    • Budgeting, Forecasting & Business Valuations
    • Mentoring & Business Coaching
    • Software & Training
  • Our Accountants
  • News & Insights
  • Send An Enquiry
Home » News & Insights » VAT Experts Discuss Post-Brexit Import VAT Procedures

VAT Experts Discuss Post-Brexit Import VAT Procedures

Posted on 20th April 2021

Sally Atkins, VAT consultant at Croner Taxwise explains the options available to importers for dealing with import VAT post-Brexit, following confusion regarding the difference between a VAT deferment account and a new reverse charge.

There are now three possibilities for businesses importing goods from both the EU and third countries, that is, anywhere in the world:

  • The original procedure which is still in use, requires the importing business to pay the import VAT on clearance of the goods into free circulation and then claim it back on the VAT return (subject to the usual rules regarding VAT recovery) using the C79 certificate as evidence, which is posted to the registered address of the importer usually within 3 weeks following the end of month of importation.
  • The second option is to set up a deferment account. A duty deferment account can be applied for to delay paying charges, such as customs duty, excise duty as well as import VAT.

A deferment account lets you make one payment a month through Direct Debit instead of paying for individual consignments. In some cases a guarantee waiver can be applied for to avoid the need for a financial guarantee. More information can be found at https://www.gov.uk/guidance/check-which-type-of-account-to-apply-for-to-defer-duty-payments-when-you-import-goods#apply-to-defer-import-vat. The VAT can be claimed back as above on the relevant VAT return with a C79 certificate as evidence.

  • Finally and arguably the most attractive option is to use the Postponed Import VAT Accounting (PIVA) procedure. This was introduced on 1.1.21 as a measure to expedite the volume of imported goods following Brexit and to improve the cashflow implications for businesses and it can be used equally by non-established taxable persons with a UK VAT registration.

Instead of paying over import VAT and waiting to claim it, the importing business should ensure the Customs declaration is appropriately completed to choose the postponed method; it should apply to download its monthly postponed import VAT statements and then complete a simple reverse charge procedure on its VAT return in Boxes 1, 4 (provided recoverable subject to the normal rules) and the net value in Box 7.

If businesses initially declare goods into a special procedure, such as customs warehousing or temporary admission, the PIVA procedure can be used to account for import VAT on the VAT Return when the declaration is submitted to release those goods into free circulation.

Further information can be found at the following links:

https://www.gov.uk/guidance/complete-your-vat-return-to-account-for-import-vat

https://www.gov.uk/guidance/get-your-postponed-import-vat-statement

Source: Croner Taxwise

If you wish to discuss this article with your accountant, please call MJB Avanti (08000) 388 799 to find out how this may affect you.

Share this post:

Share on TwitterShare on FacebookShare on LinkedInShare on E-mail

Filed Under: Exclusive News

Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice

Footer

Navigate

  • Find An Accountant
  • About Us
  • News & Insights
  • Privacy Policy
  • Letter Of Engagement

Our Services

  • Software & Training
  • Mentoring & Business Coaching
  • Budgeting, Forecasting & Business Valuations
  • Company Secretarial Bureau
  • Payroll & CIS
  • Corporation & Personal Tax
  • Bookkeeping & Accountancy

Get In Touch

Tel: 08000 388799
Send us an enquiry

  • Facebook
  • Instagram
  • Twitter
Copyright © 2023 Avanti Tax Accountants · All Rights Reserved
Part of The Maurice J Bushell & Co Ltd Franchise (UK) Ltd · Company Reg: 10407313 and The Avanti Group (UK) Ltd · Company Reg: 04635630 · Created by Purple Hippo
  • So we can contact you to discuss your enquiry
  • So a member of our team from your area can contact you
  • By clicking ‘Send Enquiry’ you agree to receive contact from Avanti Tax Accountants using the details given above. We respect your personal information and your privacy and will not share or sell your information to other organisations. Please read our Privacy Policy for more information.
  • This field is for validation purposes and should be left unchanged.