What is import VAT?
Import VAT is the VAT charged on goods brought into the UK from outside the UK. It is separate from customs duty, although both can be due at the point goods enter the country. VAT-registered businesses can generally account for import VAT through postponed VAT accounting, declaring and reclaiming it on the same VAT Return rather than paying it upfront at the border.
Postponed VAT accounting
Postponed VAT accounting lets a VAT-registered business declare and recover import VAT on the same VAT Return, rather than paying it at the point of import and reclaiming it later. This improves cash flow for importers. Businesses using the scheme need to access their monthly postponed import VAT statement online to complete their VAT Return accurately.
Related terms: VAT, Input VAT, VAT Return, Reverse Charge VAT
VAT rules depend on the nature of transactions and individual circumstances. This glossary provides general information and is not personalised tax advice.