Brexit: Postponed VAT accounting guidance for imports after the transition period ends

By Technical Team on 27 Jul 2020

HMRC has published guidance today for the new postponed VAT accounting rules for imports into the UK from EU and non-EU countries. Taxpayers do not need to apply for the scheme.

1. Complete your VAT Return to account for import VAT

This guidance introduces the new online monthly statement and the changes to the information declared in some boxes of the VAT return, which will have consequences for how the VAT return is compiled and the format for the information submitted via MTD software:

Box 1 - Include the VAT due in this period on imports accounted for through postponed VAT accounting.

Box 4 - Include the VAT reclaimed in this period on imports accounted for through postponed VAT accounting.

Box 7 - Include the total value of all imports of goods included on your online monthly statement, excluding any VAT.

2. Check when you can account for import VAT on your VAT Return

This guidance sets out the circumstances when you can, cannot, and when taxpayers must account for import VAT on the VAT return. It also touches on agents and low value consignments.