UK VAT-registered importers can account for VAT on their VAT return. They’ll need and account for import VAT on your return, the details you need will include:
- any customs entries you have made in your own records
- copies of your monthly postponed import VAT statement, when available
Unless you have delayed your customs declaration, each of your statementswill show the total import VAT postponed for the previous month.
How to complete your VAT Return
Due to postponed VAT accounting, there are changes to the way you complete the boxes on your return.
Postponed import VAT must be accounted for on the return for the accounting period which covers the date you imported the goods.
The normal rules about what VAT can be reclaimed as input tax will apply, and your monthly statement will contain the information you’ll need to support your claim.
Include the VAT due in this period on imports accounted for through postponed VAT accounting. You’ll be able to get this information from your online monthly statement, or you must estimate the amount if you do not have a statement and have delayed your customs declaration.
Include the VAT reclaimed in this period on imports accounted for through postponed VAT accounting. You must estimate the amount if you do not have a statement and have delayed your customs declaration.
Include the total value of all imports of goods in this period, not including any VAT.
Find more information about how to fill in and submit your VAT Return (VAT Notice 700/12).
If you delay your customs declaration
If you import goods that are not controlled into Great Britain from the EU between 1 January 2021 and 31 December 2021 and delay your customs declaration you must account for import VAT on the return which includes the date you imported the goods.
To complete the boxes on your return, you’ll need to estimate the import VAT due from your records of imported goods.
When you submit your delayed declaration you must select that you’re accounting for your VAT on your return. Your next online monthly statement will show the amount of import VAT due on that declaration. You’ll then be able to:
- adjust your estimate
- account for any difference on your next return
How to estimate import VAT on your VAT Return
You should make your estimate as accurate as possible, based on the amount you have paid for the goods and any other costs you have agreed to cover, for example:
Your estimate can include any customs duties due on the goods, but it does not have to do so.
After you submit your declaration your next monthly statement will reflect the actual import VAT due. This amount will take into account import VAT due on any additional customs duties.
You’ll need to make a final adjustment to reflect the difference from your estimate and account for this on your next return.
Source: HMRC Guidance. Updated 31 March 2021 + Check all updates