Importers denied cashflow benefit

Postponed VAT Accounting (PVA) is a Brexit easement, designed to avoid the negative cash flow impact of paying VAT bill at the EU/UK border and PVA is available for ALL shipments, but some forwarders are not sharing the cost savings and cashflow benefits for all shipments.

If you import from outside the EU, you can use Postponed VAT Accounting to remove the need to account for the import VAT as part of the customs clearance process, which means you don’t need to pay your agent for using their deferment account, offering you significant cash flow benefits.

Since the 1st January 2021, businesses registered for VAT, can use postponed VAT, to account for the import VAT on their periodic VAT Return and while no specific approval or accreditation is required, you or your agent must select PVA on the customs declaration.

Because PVA is not limited to EU imports you should challenge your agent directly, if they have failed to provide you with clear direction that PVA applies to imports from the rest of the world, particularly if they have been charging you a fee for making VAT payments or using their deferment account.

Noatum Logistics is totally committed to supporting our customers and driving their success, by helping them trade and grow internationally, which is why we advise and direct them on the use of PVA for all relevant imports.

Monthly Postponed Import VAT Statements (MPIVS), show the customs declarations for the previous month, providing the figures required to enter in the VAT return.

If customs declarations are delayed, the import VAT must be estimated using the information on your EIDR or other commercial import records.

Estimates can be adjusted on the next VAT return, when a deferred declaration is submitted and the actual amount of import VAT/tax due is calculated and recorded on the MPIVS for the month the declaration has been submitted.

Simply click HERE to email, or call Matt Fullard on 07507 796 028 if you would like to discuss PVA.

Follow this link to view HMRC guidance – https://www.gov.uk/guidance/complete-your-vat-return-to-account-for-import-vat