5 January 2021Newsletters and Updates
From 1 January 2021, VAT registered businesses importing goods into the UK will not have to pay import VAT and then recover it later in their VAT return. “Postponed Accounting for import VAT” is to be introduced which provides a cashflow benefit. The import VAT is never paid to HMRC at the time of import but rather it is declared as output tax and claimed as input tax on the next VAT return, assuming that the importer is fully taxable. The current paper C79 monthly certificate issued by HMRC as evidence of import VAT paid is to be abolished and replaced by an online system, which produces a “postponed import VAT statement”.
You need to register to view this online statement, using your existing government gateway account, via the following HMRC link. The online statement is only available for 6 months so it must be downloaded and retained.