VAT – Imports – Postponed VAT Accounting (PVA)

Dec 21, 2024

Postponed Import VAT Accounting was introduced on 1 January 2021 and VAT registered businesses can declare and reclaim import VAT (subject to the normal rules) via the same VAT return. This method helps to manage cashflow, as opposed to paying the VAT at the point of entry into Great Britain and recovering the VAT once you have received import evidence, which is in the form of a monthly C79 certificate.

There is no need to apply to use PVA, you would simply inform your freight forwarder of the intention to use it. The import values for a particular month can be found on a PVA statement. These statements can be accessed via the Customs Declaration Service (CDS). PVA statements are usually available 10 working days following the month of import and should be retained as proof of import.

The following VAT return entries are required when accounting for PVA:

Box 1 – Import VAT due for the period.

Box 4 – Recovery of import VAT subject to the normal rules. Fully taxable businesses will have the same figure as recorded in box 1.

Box 7 – Net value of the goods imported. To calculate this figure, it will be 5 times the import VAT as per the PVA statement.

Businesses using PVA will only get a statement should the consignment value exceed £135. Low value imports, those below the £135 threshold, should be recorded as a reverse charge in the respective VAT return.

Those who currently use the Flat Rate Scheme, PVA is dealt with outside the scheme. The full amount of import VAT should be added to box 1 only, after the flat rate calculations have been completed. You do not recover the import VAT as an allowance for input tax is built into the flat rates.

If you would like more information or advice please contact our VAT Team at Ellacotts on 01295 250401 or email solutions@ellacotts.co.uk. You can also contact us here with your query and we will get back to you.

Information for readers: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.

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