HMRC has published new guidance on the VAT treatment of imported goods ahead of the end of the Brexit transitional period.
The notice comes as the UK prepares to implement its own customs and tariff regime from 01 January 2021.
The new guidance, found here, sets out a number of changes, including the new postponed accounting scheme, when you can and cannot account for import VAT on your VAT return, and how to handle goods in consignments not exceeding £135 in value.
According to the new rules, businesses registered for VAT in the UK will be able to account for import VAT on their VAT return for goods imported from anywhere in the world.
This means it will be your responsibility to declare and recover import VAT on the same VAT return – rather than having to pay it upfront and recover it later as per the current rules.
You can account for import VAT on your VAT return if:
- the goods you import are for use in your business
- you include your EORI number, which starts ‘GB’ on your customs declaration
- you include your VAT registration number on your customs declaration, where needed
If the goods are declared into a “customs special procedure”, you can account for import VAT on your VAT Return when you submit the declaration that releases those goods into free circulation. This applies to the following special procedures:
- customs warehousing
- inward processing
- temporary admission
- end use
- outward processing
- duty suspension
To learn more about the new import VAT rules, please click here.
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