POSTPONED VAT ACCOUNTING (PVA)

The Government announced that on 1 January 2021 Postponed VAT Accounting (PVA) will be introduced on imports. Currently, imported goods from a non-EU country are liable for payment of import VAT at the same time as customs duty. However, importers can defer to the 15th of the following month the payment of the customs duty and import VAT by using a duty deferment account (if available to them).

How will the PVA work?

All UK VAT registered Importers will be eligible to use PVA; no authorisation will be required. They will simply make the appropriate entry and provide their EORI and/or VAT registration number (VRN) on their customs declaration. This process (subject to customs clearance) will allow the goods to enter into free circulation without up-front payment of the import VAT. The customs declaration will generate an online Monthly Postponed Import VAT Statement (MPIVS) that will be the evidence required to account for and recover the import VAT as input tax on their next VAT return. (Note: The C79 will continue to be produced for those entries where any VAT is paid on importation).

If you wish to apply this process and require further information, please contact us –

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For more information please download our free guide Horizon International Guide to PVA

Also, to assist with understanding how trading terms may be impacted by post-Brexit customs procedures, download our Incoterms guide – Horizon International Post-Brexit Incoterms Guide