Those who are accounting for Import VAT on their VAT Returns or, in other words, using the “Postponed VAT Accounting for Import VAT”, will see the end date to account for the mentioned import VAT has changed.
According to a new update from HMRC, the final date to report Import VAT on a VAT Return is 31 December 2021, extending the original deadline by 6 months.
If you are wondering what is the Postponed VAT Accounting for Import VAT, it is a system created post-Brexit to simplify imports of goods into Great Britain and Nothern Ireland from the VAT standpoint.
This system allows to declare and recover Import VAT on the same VAT Return, rather than having to pay it upfront and recover it later, creating a cashflow benefit. At the same time accounting for VAT on imports will not be a reason to halt a company’s products at customs.
Global VAT Compliance can help you avoid Import VAT payments and improve your cash flow by applying for the Postponed VAT Accounting for Import VAT.