IMPORTS: Postponed VAT Accounting. What happens to import duty?
Since the Postponed VAT Accounting system came into force, I no longer get VAT bills from the likes of FedEx, UPS etc. That was to be expected. However, what has happened to import duty? Usually a small portion of each bill was for import duty (usually around 3-4%). How is import duty paid and accounted for these days?
IMPORTS: Postponed VAT Accounting. What happens to import duty?
Since the Postponed VAT Accounting system came into force, I no longer get VAT bills from the likes of FedEx, UPS etc. That was to be expected. However, what has happened to import duty? Usually a small portion of each bill was for import duty (usually around 3-4%). How is import duty paid and accounted for these days?
0 replies
Seller_sFEUMUfeW5484
If your shipments fall under the IOSS system, there are no duties. Not sure for shipments outside of this.
Seller_sFEUMUfeW5484
Ok, wasn’t clear from your question. We import from the USA using DHL, we get the usual invoice which shows the VAT and duties, we then also get the C79 so that we can claim the vat back etc.
PVA is optional though right?
This is what our accountants told us:
The main advantage of Postponed VAT Accounting (PVA) is that you won’t have to pay the VAT upfront before the goods are released to you. Instead you declare the VAT payable on the relevant VAT Return (Box 1) and provided the goods are purchased for business purposes reclaim the same amount as input VAT (Box 4). Any import duty will still need to be paid on arrival into the UK.
