ÀÏ˾»úÎçÒ¹¸£Àû

Home / De-Voil / Part V3 Supplies, acquisitions and imports / Division V3.3 Imports / Imports and import VAT / V3.305 Accounting for import VAT—postponed accounting; payment of import VAT in other circumstances
Commentary

V3.305 Accounting for import VAT—postponed accounting; payment of import VAT in other circumstances

Part V3 Supplies, acquisitions and imports

This paragraph covers postponed VAT accounting and other methods of paying import VAT.

Postponed VAT accounting

Since 1 January 2021, UK VAT-registered businesses can account for import VAT via VAT returns, rather than having to pay VAT at the border. This option minimises the cash flow impact for businesses as it removes the need to pay VAT upfront, and then have to wait to reclaim this via the VAT return.

SI 2019/60 sets out the legal provisions for the introduction of postponed accounting with effect from 1 January 20211. These regulations also amend the parts of SI 1995/2518 which deal with VAT to be accounted for on returns (see V5.103) in the following ways:

  1. Ìý

    •ÌýÌýÌýÌý by inserting SI 1995/2518, reg 40(1)(ba)2 – such that a VAT return must account for all import VAT which has been accounted for on that VAT return in accordance with SI 2019/60 (ie the postponed accounting system)

  2. Ìý

    •ÌýÌýÌýÌý by revoking SI 1995/2518, reg 40(1)(d)(iii)

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial

Web page updated on 26 Aug 2024 08:48