• Current students
      • Student centre
        Enrol on a course/exam
        My enrolments
        Exam results
        Mock exams
      • Course information
        Students FAQs
        Student induction
        Course enrolment information
        Key dates
        Book distribution
        Timetables
        FAE Elective Information
      • Exams
        Exam Info: CAP1
        E-assessment information
        Exam info: CAP2
        Exam info: FAE
        Reasonable accommodation and extenuating circumstances
        Timetables for exams & interim assessments
        Interim assessments past papers & E-Assessment mock solutions
        Main examination past papers
        Information and appeals scheme
        JIEB: NI Insolvency Qualification
      • CA Diary resources
        Mentors: Getting started on the CA Diary
        CA Diary for Flexible Route FAQs
      • Admission to membership
        Joining as a reciprocal member
        Conferring dates
        Admissions FAQs
      • Support & services
        Recruitment to and transferring of training contracts
        CASSI
        Student supports and wellbeing
        Learning Hub data privacy policy
        Online Payment FAQs
        Audit qualification
    • Students

      View all the services available for students of the Institute

      Read More
  • Becoming a student
      • About Chartered Accountancy
        The Chartered difference
        What do Chartered Accountants do?
        5 Reasons to become a Chartered Accountant
        Student benefits
        School Bootcamp
        Third Level Hub
        Study in Northern Ireland
        Events
        Blogs
        Member testimonials 2022
        Become a Chartered Accountant podcast series
      • Entry routes
        College
        Working
        Accounting Technicians
        School leavers
        Member of another body
        International student
        Flexible Route
        Training Contract
      • Course description
        CAP1
        CAP2
        FAE
        Our education offering
      • Apply
        How to apply
        Exemptions guide
        Fees & payment options
        External students
      • Training vacancies
        Training vacancies search
        Training firms list
        Large training firms
        Milkround
        Training firms update details
        Recruitment to and transferring of training contract
        Interview preparation and advice
        The rewards on qualification
        Tailoring your CV for each application
        Securing a trainee Chartered Accountant role
      • Support & services
        Becoming a student FAQs
        Who to contact for employers
        Register for a school visit
    • Becoming a
      student

      Study with us

      Read More
  • Members
      • Members Hub
        My account
        Member subscriptions
        Annual returns
        Application forms
        CPD/events
        Member services A-Z
        District societies
        Professional Standards
        Young Professionals
        Careers development
      • Members in practice
        Going into practice
        Managing your practice FAQs
        Practice compliance FAQs
        Toolkits and resources
        Audit FAQs
        Other client services
        Practice Consulting services
        What's new
      • Overseas members
        Working abroad
        Working in Australia
        Overseas members news
        Tax for returning Irish members
      • In business
        Networking and special interest groups
        Articles
      • Public sector
        Public sector news
        Public sector presentations
      • Support & services
        Letters of good standing form
        Member FAQs
        AML confidential disclosure form
        CHARIOT/Institute Technical content
        TaxSource Total
        Audit Qualification requirements
        Pocket diaries
        Thrive Hub
    • Members

      View member services

      Read More
  • Employers
      • Training organisations
        Authorise to train
        Training in business
        Manage my students
        Incentive Scheme
        Recruitment to and transferring of training contracts
        Securing and retaining the best talent
        Tips on writing a job specification
      • Training
        In-house training
        Training tickets
      • Recruitment services
        Hire a qualified Chartered Accountant
        Hire a trainee student
      • Non executive directors recruitment service
      • Support & services
        Hire members: log a job vacancy
        Firm/employers FAQs
        Training ticket FAQs
        Authorisations
        Hire a room
        Who to contact for employers
    • Employers

      Services to support your business

      Read More
☰
  • Find a firm
  • Jobs
  • Login
☰
  • Home
  • Knowledge centre
  • Professional development
  • About us
  • Shop
  • News
Search
View Cart 0 Item

News

  • Home/
  • News
☰
  • News
  • News archive
    • 2020
    • 2019
  • Press releases
    • 2022
    • 2021
    • 2020
  • Newsletters
  • Press contacts
  • Media downloads
  • Podcasts Chartered Accountants Ireland
  • Budget day news

HMRC guidance on postponed VAT accounting

Apr 26, 2021

HMRC has sent an email reminder to Chartered Accountants Ireland with useful Q&As about postponed VAT accounting (PVA) which may be used to account for import VAT on a VAT return instead of paying VAT upfront at the point of import. PVA can therefore provide an important cash flow benefit to businesses which can avail of it.

HMRC guidance

“Adapting to the new rules for trading with the EU can be daunting but we’re here to help you. Customers are telling us that using Postponed VAT Accounting (PVA) is an area that they need help with, so this week’s email is focused on how PVA works.

Accounting for import VAT on your VAT return (also called Postponed VAT Accounting) means you’ll account for and recover import VAT on the same VAT return, rather than having to pay it upfront and recover it later.

In this email you’ll find out about the steps that you can take to make sure you benefit when you’re importing goods into Great Britain or Northern Ireland, from any country. We’ll tell you:

  1. About PVA
  2. How to tell HMRC that you want to use PVA
  3. How to complete your VAT return when using PVA
  4. How to get the statement that you will need to complete your VAT return
  5. Where to find help and support

 

Question 1: I’ve heard about PVA, but I’m not sure if it’s for me. Why should I use it, and where can I find out more about it?

Answer: PVA allows UK VAT registered importers to account for and recover import VAT on their VAT return. PVA is available permanently and we expect that most businesses will choose to use it, because it provides significant cash flow benefits compared to the alternative of paying the import VAT when the goods are imported.

Different rules apply in different situations. In some cases, you must account for import VAT on your VAT return – for example, if you delay your customs declaration. 

You can go to GOV‌‌‌‌.UK to check when you must use PVA to account for import VAT on your VAT return, and when it is optional. 

Question 2: How do I tell HMRC that I want to use PVA?

Answer: There isn’t an application process for PVA, and you do not need to tell HMRC in advance if you want to start accounting for import VAT on your VAT return. You need to confirm in your customs declaration that you are using PVA. 

If you use the Customs Handling of Import and Export Freight (CHIEF) system

On your declaration, enter:

  • your EORI number starting with ‘GB’ which includes your VAT registration number into box 8 (Header Consignee), or, if applicable, your VAT registration number in box 44h (Registered Consignee)
  • 'G' (Postponed accounting for VAT approved) as the method of payment in Box 47e.

If you use the Customs Declaration Service (CDS)

On your declaration, enter:

  • your VAT registration number at header level in data element 3/40.

Please note that VAT will be recorded against your EORI and will be at declaration level only.

If someone else is doing your customs declarations for you such as a freight forwarder, customs agent, broker or fast parcel operator you must tell them you want to use PVA. Tell them that you want to use PVA to account for import VAT on the imported goods, so that they can complete the customs declaration correctly on your behalf. Keep a written record of what is agreed for your records.

Whoever completes the declaration must take care when selecting how to account for import VAT on the customs declaration, as this cannot be changed once the declaration has been submitted.

Question 3: How do I complete my VAT return if I’m using PVA?

Answer: After you have selected PVA on your customs declaration you will need to account for import VAT when you complete your VAT return.

To complete your VAT return, you will need:

  • details of 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.

If you are delaying your customs declarations:

  • 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.

Question 4: How do I get the statement I need to complete my VAT return?   

Answer: If you account for your import VAT on your VAT return, you’ll need to get a postponed import VAT statement online.

Unless you have delayed your customs declaration, each statement will show the total import VAT postponed for the previous month.

Your statements will usually be available to view by the 6th working day of the month.

To view your statements, you’ll need a Government Gateway user ID and password which is linked to your EORI number. If you do not have a user ID and password, you can create your account on GOV‌‌‌‌.UK.

YouTube videos

Watch our short videos on HMRC's YouTube channel to familiarise yourself with customs processes and what you need to do before trading goods with the EU.

Live webinars

You can attend our webinars about:

  • Customs Import Declarations: An overview
  • Exporting: what you need to do to keep your goods moving
  • Importing: what you need to know about Staged Controls
  • Trader responsibilities when using an intermediary.

If you’d like to attend a webinar you can register here.

Check out our forums

To ask and get answers to specific questions about HMRC processes for importing or exporting, please visit our customer forums.

Give us a call

Our customer service advisors are available to answer your queries on the Customs and International Trade helpline. They’ll help you with importing, exporting and customs reliefs. The helpline is open from 8‌‌‌‌am to 10‌‌‌‌pm Monday‌‌‌ to‌‌‌ Friday and from 8‌‌‌‌am to 4‌‌‌‌pm at weekends. Call to speak to an advisor on 0300‌‌‌‌ ‌322‌‌‌‌‌‌‌ ‌9434.

We will continue to provide guidance and support to help you and your business, including information on GOV‌‌‌‌‌‌‌.UK, our popular live webinars and through this weekly email.

If you know of a business who would also find these weekly emails helpful, please forward it on, or suggest they register to get these updates directly to their inbox.”

The latest news to your inbox

Useful links

  • Current students
  • Becoming a student
  • Knowledge centre
  • Shop
  • District societies

Get in touch

Dublin HQ

Chartered Accountants
House, 47-49 Pearse St,
Dublin 2, D02 YN40, Ireland

TEL: +353 1 637 7200
Belfast HQ

The Linenhall
32-38 Linenhall Street, Belfast,
Antrim, BT2 8BG, United Kingdom

TEL: +44 28 9043 5840

Connect with us

Something wrong?

Is the website not looking right/working right for you?
Browser support
CAW Footer Logo-min
GAA Footer Logo-min
CCAB-I Footer Logo-min
ABN_Logo-min

© Copyright Chartered Accountants Ireland 2020. All Rights Reserved.

☰
  • Terms & conditions
  • Privacy statement
  • Event privacy notice
  • Sitemap
LOADING...

Please wait while the page loads.