FAQs

To change to Postponed VAT Accounting, simply instruct your customs agent(s) in writing to declare all future imports to PVA. This only requires a specific code to be entered on each import declaration. 

It is unlikely that you can recover all input VAT if you make exempt sales. There is a complex annual de-minimis allowance, but we would need more information to advise you properly. 

When you receive payment in advance of delivering goods or services, or issue a sales invoice, this creates a VAT tax point. You must therefore declare 1/6th of the income as VAT at that stage. 

Only taxable income counts towards the £90,000 compulsory registration threshold. Taxable income includes standard, reduced, or zero-rated sales. Grants, donations, and VAT-exempt income are not included in this calculation.

We recommend you speak directly to a member of our Indirect Tax Services team here for support and advice on preparing for any HMRC enquiry.

Charities may benefit from a limited range of VAT reliefs, including those for advertising, energy use, construction work, and commercial rent. Each relief has specific conditions, so please consult a member of our Indirect Tax Services team here for detailed advice.

If the under-declared VAT exceeds £10,000, you must notify HMRC using the “Error Correction” procedure. 

Contact your supplier to request a revised invoice that includes their VAT number. HMRC generally will not allow input VAT recovery without a valid VAT number. 

For business-to-business services purchased from overseas, you must account for both output and input VAT under the Reverse Charge mechanism. 

Yes, you may reclaim VAT on services received up to 6 months before your registration date, and on goods still held in stock, up to 4 years prior. You must have a valid VAT invoice from the supplier to support your claim.