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