Cross Border VAT- Goods arriving in the UK

International Goods

• From 1st January 2021 goods entering the UK will be an import and postponed accounting will be introduced for worldwide imports.

• This will be better for cash flow as it will mean that VAT is not payable by a VAT registered business at the time goods arrive in the UK.

• This will mean there will be changes to the way the UK importer completes the boxes on the VAT return.

• The UK importer must account for postponed import VAT on the return for the VAT quarter which covers the date the goods were imported.

• The UK importer will need details of the imports to be included in the VAT return – this will include copies of your monthly postponed import VAT statement when it is available.

• If you are a UK importer, it is very important that you have access to your monthly online import VAT statements. To set this up please follow this link https://www.gov.uk/guidance/get-access-to-the-customs-declaration-service – you will need a government gateway account and EORI number.

• Customs duty will be payable at the point of entry. The UK importer should consider if they appoint a freight agent to deal with formalities.

If you need more advice on how your business needs to trade with the EU, please get in contact with us.

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Check out our related blog: Cross border VAT- Goods leaving the UK

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