What is Postponed VAT Accounting (PVA)

Postponed VAT Accounting, also known as PVA, is a process for accounting import VAT that was introduced on 1st January 2021.

Essentially, rather than pay import VAT when your goods are imported into the UK, and then reclaim the VAT on your VAT return, PVA allows you to both declare and reclaim the import VAT on your VAT return. Meaning no cash is transferred and your VAT liability is neutral (as the amount you pay is offset by the amount you reclaim). 

How to register for Postponed VAT Accounting? 

If you want to use Postponed VAT Accounting you will need to register with CDS through your Government Gateway account.

For instructions on how to do that see our step-by-step guide here: https://docs.google.com/document/d/1jw6nqpoUz3e4CQMR6TWaHZ5l28b2WAgb8A5Qour67kc/edit?usp=sharing

‍Once you have access to CDS, you will be able to view your monthly PVA statements. The figures from these statements will need to be included as adjustments in your VAT return each period (see below).

Which boxes on the VAT return do I need to adjust for PVA?

Box 1 - Include the VAT due in the period on imports accounted for through PVA. This increases your VAT liability.

Box 4 - Include the same adjustment/figure that was included in box 1 above. This decreases your VAT liability.

Box 7 - Include the total value of all imports of goods in the period NOT including the VAT amount above (e.g. the net value of the goods).

For example, if you were importing goods valued at £1000 and the deemed VAT value was £200 then you would include a PVA adjustment of £200 in boxes 1 & 4 and an adjustment of £1000 in box 7.

More information can be found here:

• https://www.gov.uk/guidance/check-when-you-can-account-for-import-vat-on-your-vat-return
• https://www.gov.uk/guidance/complete-your-vat-return-to-account-for-import-vat
• https://www.gov.uk/guidance/get-your-postponed-import-vat-statement
• https://www.gov.uk/guidance/apply-for-an-account-to-defer-duty-payments-when-you-import-or-release-goods-into-great-britain‍