V3.305 Accounting For Import VAT—Postponed Accounting; Payment Of Import VAT In Other Circumstances

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Commentary

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:

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•�� by inserting SI 1995/2518, reg 40(1)(ba)² – such that a VAT return must account for all import VAT which has

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V3.193B Place of supply of services—special rule—broadcasting, telecommunications and electronically supplied services ('BTE services') supplied to non-taxable persons

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