Businesses registered for VAT in the UK are able to account for import VAT on their VAT return. This is often referred to as postponed VAT accounting. For most businesses, this means that they can declare and recover import VAT on the same VAT return. The normal VAT recovery rules apply regarding VAT that can be reclaimed as input tax. 

This applies to all customs declarations that require businesses to account for import VAT, including supplementary declarations, except when HMRC have notified a business otherwise. 

These rules save businesses from having to pay import VAT (at the port of entry) and then having to recover it. This offers significant cashflow benefits for businesses compared to paying import VAT upfront and then having to wait to recover this VAT.

Businesses are able to account for import VAT on imports into Great Britain (England, Scotland and Wales) from anywhere outside the UK. Businesses in Northern Ireland can use the postponed VAT accounting for goods imported from outside the UK and EU.

VAT registered businesses do not need any specific approval from HMRC in order to account for import VAT on their VAT return.

Source: New feed