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).