Search News


 

News

Lloyd & Co
Chartered Accountants

103-105 Brighton Road
Coulsdon
Surrey, CR5 2NG
020 8668 0500
This email address is being protected from spambots. You need JavaScript enabled to view it.

Source: HM Revenue & Customs | | 17/12/2020

From 1 January 2021, businesses will be able to account for import VAT on imports into Great Britain (England, Scotland and Wales) from EU and non-EU countries. Businesses in Northern Ireland will be able to use the postponed VAT accounting for goods imported from outside the UK and EU. The normal rules setting out what VAT can be reclaimed as input tax will apply.

HMRC’s guidance on the new postponed VAT accounting rules for imports into the UK has been updated. This system will save businesses from having to pay VAT upfront at the time of import and then having to recover. This will help cashflow and hopefully keep goods moving. The guidance now includes additional information on how to complete your declaration if you are accounting for import VAT on your VAT return. 

VAT registered businesses do not need approval to account for import VAT on their VAT Return and can start doing so from 1 January 2021.

Postponed import VAT accounting can be used if:

  • the goods are imported for use in your business
  • you include your business’ VAT registration number on your customs declaration.

Businesses eligible to defer submitting supplementary declarations for up to 6 months, must account for import VAT on their VAT Return. 



Latest News

Government help for people in debt
21/01/2021 - More...
New government proposals have been published that look at further extending debt solutions to help more people suffering

Online tax payment plans
21/01/2021 - More...
New figures published by HMRC have revealed that some 25,000 taxpayers have set up an online payment plan to manage

Tax when you sell shares
21/01/2021 - More...
Capital Gains Tax (CGT) is normally charged at a simple flat rate of 20% when you sell shares unless they are in a CGT