A UK VAT-registered business imports goods for its business from outside the UK and, instead of paying import VAT to customs at the point of entry and reclaiming it later, wants to declare and recover that import VAT on the same VAT Return. Under HMRC's postponed VAT accounting rules, is this available, and what must the business do to use it?
- Yes; postponed VAT accounting is available on imports from anywhere in the world, and the business simply includes its VAT registration number and EORI number on the customs declaration, without needing prior HMRC authorisation
- Yes, but only for goods imported from EU countries; imports from the rest of the world still require VAT to be paid upfront at the border
- No; postponed VAT accounting was withdrawn, so businesses must now always pay import VAT upfront and reclaim it on a later return
- Yes, but only after HMRC grants specific prior approval following a separate application process
Why A? And why not the others?
Correct answer: A. Yes; postponed VAT accounting is available on imports from anywhere in the world, and the business simply includes its VAT registration number and EORI number on the customs declaration, without needing prior HMRC authorisation
Postponed VAT accounting lets a UK VAT-registered business declare and recover import VAT on the same VAT Return rather than paying it upfront at the border, and it applies to imports of goods from anywhere in the world, not just the EU; a business simply needs to enter its own VAT registration number and EORI number on the customs declaration, with no separate prior authorisation from HMRC required. The option limiting it to EU imports wrongly reintroduces a distinction that does not exist in the current rules, which apply the same postponed treatment regardless of the country of origin. The option claiming postponed VAT accounting was withdrawn is factually wrong; the mechanism remains available and has since been confirmed as a permanent feature rather than a temporary one. The option requiring a separate prior-approval application misstates the process: eligibility follows automatically from being VAT-registered and correctly declaring the necessary reference numbers on the import declaration, not from a distinct authorisation step businesses must apply for in advance.
Source: GOV.UK: Check when you can account for import VAT on your VAT Return