Started 1 Jan 2021
Account for VAT on the VAT return rather than pay at Port.
No approval needed to start using it.
When making import declaration, select duty deferment account instead of immediate payment. Usually, businesses use freight forwarders to complete import paperwork, so just need to instruct the freight forwarding company via a simple email to start using VAT postponement.
All VAT deferred will be captured in Monthly postponed import VAT statement (MPIVS).
Businesses typically will have both C79s (from courier companies like UPS etc.) and MPIVS.
To get your C79s and MPIVS use link below:
Get your postponed import VAT statement – GOV.UK (www.gov.uk)
VAT Return
Box 1 include VAT due on imports as shown on MPIVS
Box 4 include VAT reclaimed, same figure as Box 1*
So net effect – NIL
Box 7 include total value of all imports
*Input VAT will be restricted for exempt and partially exempt businesses.
Bonus
- Import VAT is calculated by adding supplier invoice, freight and custom duty.
- In Sage use T18 code when positing invoices where postponement used.
Roy Accountants 