18 Feb 2021 10:37 AM

HMRC have updated (11 February) their guidance on how and when UK VAT-registered businesses should account for import VAT on their VAT returns.

We have also published various articles with information on the post Brexit VAT changes and postponed VAT accounting and related topics.

Here I provide a recap on postponed VAT accounting (PVA) with more details on how to get the statement and how various accounting software applications are dealing with this.

HMRC

As a quick reminder, postponed VAT accounting gives an option to account for, and recover, VAT on imported goods on the same VAT return, rather than paying for the import VAT upfront.

You can choose to use Postponed VAT accounting (PVA) if you fulfil the following criteria:

  • you have a UK business that is registered for VAT
  • you import business goods into the UK with a value in excess of £135 (exclusive of VAT)
  • you elect to use PVA on the customs declaration
  • you use your own VAT registration and EORI numbers on the customs declaration

To download the postponed import VAT monthly statement, you will need a Government Gateway user ID and password which is linked to your EORI number.

You have to use the following link which brings you straight into the statement page https://www.gov.uk/guidance/get-your-postponed-import-vat-statement

The process is quite straightforward, providing you use the correct link and the login details.

It is important to remember that the statements can only be accessed for 6 months from the date on which they are published.

For more information on how and when UK VAT-registered businesses should account for import VAT go to  https://www.gov.uk/guidance/check-when-you-can-account-for-import-vat-on-your-vat-return

XERO

Xero has developed a PVA update which will be released well before the next VAT deadline of 7th March. The new functionality will be automatically available to Xero customers.

When creating a VAT Return in Xero

  • You will have to select the ‘PVA option’ button and add the amount from your Monthly Postponed Import VAT Statement (MPIVS), available in your HMRC portal.
  • Xero will populate your VAT return automatically

SAGE

Sage has created a quick guide of the most common scenarios for tax codes before and after 1 January 2021. This is for Sage cloud Accounts version 27.1 and above.

Our specialist Brexit Advisory Team are publishing updates and guidance for businesses adn individuals on changes following Brexit. If you have any questions or need assistance with this or any Brexit related matter please contact us.

Before Brexit

After Brexit

After Brexit

 

England, Wales and Scotland

Northern Ireland

T0 (box 6), T1 (boxes 1 and 6) or T2 (box 6)Sale of goods - no VAT registration provided T0 (box 6) - Zero rates transactions - assuming sale is zero rated No Change: T0 (box 6), T1 (Boxes 1 and 6) or T2 (Box 6).

 

   
T1 (boxes 1 and 6)Sale of services - no VAT registration provided No change: T1 (boxes 1 and 6) - Standard rated transactions No change: T1 (boxes 1 and 6) - Standard rated transactions

 

   
T4 (boxes 6 and 8)Sales of goods to VAT registered customers in EC T0 (box 6) - Zero rates transactions - assuming sale is zero rated  No change: T4 (boxes 6 and 8) - Sales of goods to VAT registered customers in EC

 

   
T7 (boxes 7 and 9)Zero rated purchases of goods from suppliers in EC

T17 (boxes 1, 4 and 7) - Import of goods - Under import reverse charge threshold of £135

T18  (boxes 1, 4 and 7) - Import of goods - Postponed VAT accounting

T19  (boxes 4 and 7) - Import of goods - VAT not Postponed VAT Accounting

No change: T7 (boxes 7 and 9) - Zero rated purchases of goods from suppliers in EC
     
T8 (boxes 2, 4, 7 and 9)Standard rated purchases of goods from suppliers in EC

T17 (boxes 1, 4 and 7) - Import of goods - Under import reverse charge threshold of £135

T18 (boxes 1, 4 and 7) - Import of goods - Postponed VAT Accounting

T19 (boxes 4 and 7) - Import of goods - VAT not Postponed VAT Accounting

No change: T8 (boxes 2, 4, 7 and 9) - Standard rated purchases of goods from suppliers in EC

 

 

 
T22 (box 6)Sales of services to VAT registered customers in EC T0 (box 6) - Zero rates transactions T0 (box 6) - Zero rates transactions
     
T23 (boxes 6 and 7)Purchase of services - no VAT T16 (box 7) - Purchase of services from ROW - No VAT T16 (box 7) - Purchase of services from ROW - No VAT
     
T24 (boxes 1, 4, 6 and 7)Purchase of services - reverse charge T15 (boxes 1, 4, 6 and 7) - Purchase of services from ROW - Reverse charge T15 (boxes 1, 4, 6 and 7) - Purchase of services from ROW - Reverse charge