IMPS02350 - Background information and policy objectives: postponed VAT accounting

PVA was introduced in January 2021. It allows a VAT registered importer to account for the relevant import VAT on their VAT return rather than paying it immediately or through their duty deferment account and reclaiming it as input tax using the HMRC form C79.

Where PVA is chosen (and notified) on a customs declaration, the VAT amount will appear on a Monthly Postponed Import VAT Statement (MPIVS), which businesses must access via the CDS financial dashboard. The MPIVS provides them with the VAT amounts to be included in box one of the VAT return and (where appropriate)in box four to be reclaimed as input tax , subject to the normal rules. Businesses are encouraged to download the statements for their records.

Importers who are not VAT registered or who, under input tax rules would be unable to treat the import VAT as input tax because they are not the owner of the goods being imported, are NOT permitted to use PVA.

Importers who engage intermediaries to complete their customs declarations on their behalf should have a written agreement with that intermediary to confirm how the import VAT will be accounted for. It is important to remember that the decision to use PVA (or not) is for the importer to make, not the intermediary.

Check when you can account for import VAT on your VAT Return - GOV.UK provides further information the mechanics of using PVA

Guidance on how an importer accesses their MPIVS is given at: Get your postponed import VAT statement - GOV.UK

Importers are also given guidance on how to interpret their MPIVS at: Understanding your monthly postponed import VAT statements - GOV.UK