IMPS03220 - Import entry procedures: release of goods where VAT is to be paid, deferred or postponed and the amount of VAT cannot be established

Registered taxable persons

Importers who are registered for VAT may either:

• deposit the potential VAT along with any other charges potentially due (for miscellaneous cash deposits, input tax evidence will not be issued until the deposit is adjusted)

or

• pay VAT outright on a value inclusive of the potential duty and/or other charges. In this case, evidence for input tax deduction will be issued and no subsequent adjustment will be made for VAT purposes even if the amount of VAT paid turns out to be incorrect. Where an importer chooses this option then they may use Postponed VAT Accounting and the full amount should appear on the monthly VAT statement and be accounted for through the VAT return.

Directions for completing import declarations to exercise this option are given in the Tariff, Volume 3 Part 3 Section 3.1 Box 47(e).

Where a trader wishes to use PVA but the total amount of import VAT cannot be fully established then they must declare the maximum amount possible and then adjust amounts down on their VAT returns as required.

Non-registered persons

Importers who are not registered for VAT must in all cases include the potential VAT in their deposit.

Further information on what to do when the precise amount of duty and other charges are not known is given in Notice 702, paragraph 2.12.