HMRC releases new guidance on VAT
Since publishing this blog further guidance has been released by HMRC (11 December).
Please click here to read the updated information.
This week HMRC published guidance for the new postponed VAT accounting rules for imports into the UK from EU and non-EU countries.
The new guidance identifies that taxpayers do not need to apply for the postponed VAT accounting scheme.
Instead import VAT will be accounted for on the VAT returns of your business in certain circumstances, where:-
- Imported goods are for use in your business;
- You include your EORI number on your customs declaration; and
- You include your VAT number on your customs declaration
Your business will not be able to account for import VAT on the VAT return if is it is authorised to use simplified declarations for imports and complete the simplified frontier declaration before January 2021.
Where import VAT is included on your VAT returns, it should be done so as follows:-
Box 1 – Include the VAT due in this period on imports accounted for through postponed VAT accounting.
Box 4 – Include the VAT reclaimed in this period on imports accounted for through postponed VAT accounting.
Box 7 – Include the total value of all imports of goods included on your online monthly statement, excluding any VAT.
Please click here to read the latest update from HMRC.
If you have any questions on VAT please do contact us