VAT Payment Changes for Goods Imported into the UK from the EU and ROW

It has just been announced that as of the 1st January 2021, VAT on goods being imported into the UK from both the EU and ROW will not be paid at the border. Instead, it will be accounted for on the UK VAT return in boxes 1, 4 and 7.

Dated: 16 December 2020 Author: Terri Bruce, Director of Indirect Tax for SMEs and Not for Profits

A certificate will be issued via the government gateway account of the business on a monthly basis and this will contain the figures that are required to be entered into your VAT return.  Companies will need to apply through their government gateway account to get this certificate.  The statement will be available to view during the first half of the month.  It is also important to note that statements will only be accessible for 6 months from the date of publication, so the onus is on the business to download and keep copies for your records.

Even if businesses have decided to defer their import declaration under the simplified procedures until 30 June 2021, UK businesses will still need to calculate the VAT on imports and then reconcile this to the certificate once supplementary declarations have been made.

How to get your postponed import VAT statement:

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