Postponed VAT accounting

Also called: PVA · reverse charge on import

A scheme under which the importer declares and deducts import VAT in its VAT return instead of paying it at the border. The UK made it available to all VAT-registered importers from 2021, and several EU countries offer similar reverse-charge arrangements under their own rules.

In practice

It removes the cash-flow gap between paying import VAT and reclaiming it, but the importer must download monthly statements to support the return.

Applies to: UKEU

Related terms

Import VAT
Value added tax charged on goods when they enter a VAT territory, collected by customs together with duty. Its base is normally the customs value…
Duty deferment account
An arrangement letting an importer pay duty and import VAT periodically instead of per consignment. In the UK it is a duty deferment account with…
HMRC
The UK tax and customs authority, responsible for collecting customs duty, import VAT and excise, issuing advance rulings and running CDS. Border…

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