Accounting for import VAT on your VAT return means that you will declare and recover the import VAT on the same VAT return, instead of paying it in advance and recovering it later.

The normal rules on what VAT can apply recovered as input tax .

Who can bill Import VAT on their VAT return

From January 1, 2021, if your business is VAT registered in the UK, you will be able to account for Import VAT on your VAT return for goods imported into:

• Great Britain (England, Scotland and Wales) from anywhere outside the UK

• Northern Ireland outside the UK and EU

There will be no change in the treatment of VAT or the way it is accounted for for the movement of goods between Northern Ireland and the EU.

You do not need any consent to account for import VAT on your VAT return.

Non-established taxpayers

If you are not established as a taxpayer, you must hire someone to do customs clearance for you, including completing a customs declaration.

If you want to settle the import VAT on your VAT return, you must inform the person in charge of the customs office to indicate it in the customs declaration and enter your details as the recipient.

When can you account for import VAT on your VAT return

You can do this if:

• the goods you import are intended for use in your company

• you provide your VAT number in your customs declaration

Goods in special procedures

If you are reporting goods to Customs Procedure , you can choose to settle the import VAT on your VAT return by submitting a declaration that puts them into free circulation from the following special procedures:

• customs warehousing

• inward processing

• temporary admission

• end use

• outward processing

• suspension of duties

Excise goods

You can choose to settle the import VAT on the VAT return when you release excise goods for use in the UK – also known as “eligible for home use.””.

This also applies to situations where the goods are released from the excise warehouse after the period of suspension of duty collection from the moment of importation.

If you don’t know the full customs value of the goods

You can still settle the import VAT on your VAT return even though you cannot confirm the full customs value of the imported goods.

If you use CHIEF , you should:

1. Declare the highest value of VAT.

2. Select that you will settle the import VAT in the VAT declaration.

If you use a customs declaration service, you should:

1. Take advantage of the guarantee, to cover an unknown amount of VAT.

2. Select that you will settle the import VAT on the VAT return in a known amount.

When you need to include the import VAT on your VAT return.

If you are importing goods that are not inspected into the UK from the EU between January 1 and June 30, 2021, you must include the import VAT on your VAT return if:

• you delay the customs declaration

• use the simplified customs declaration to make a declaration in your own records

You must make sure that when completing the supplementary declaration, you select that you will settle the import VAT in your VAT declaration.

Using someone to import goods on your behalf

If you commission a person or company to import goods on your behalf (eg a Freight Forwarder, Customs Broker, Broker or Express Package Operator), you must tell them how you want to account for the import VAT on that import so they can complete a customs declaration.

If you already have someone, please contact them and let them know if you want to account for import VAT on your VAT return for goods you import from January 1, 2021. Keep a written record of what has been agreed.

Purchase of goods from a supplier who arranges for someone to import goods on your behalf

You can buy goods from a vendor who arranges for a person or company – for example, a rapid shipment operator – to import and deliver the goods to you. You need to agree with the supplier how you want to account for import VAT so that he can tell him to make the appropriate entry on the customs declaration. You should keep a written record of what has been agreed.

Unless the supplier explicitly tells them not to do so, some fast shipping operators will choose to include the import VAT on their VAT return. Your supplier will let you know when they ask for your registration number EORI or VAT. You will need to inform your supplier if you do not want to include the import VAT on your VAT return.

The import will appear on your monthly statement as normal.

How to complete a customs declaration for the purpose of settling import VAT in the VAT declaration

After completing the customs declaration, you can choose to account for the import VAT on your VAT declaration.

If you use the customs handling system for importing and exporting goods ( CHIEF )

You must enter on your declaration:

• Your number EORI starting with“ GB ”, which includes your VAT registration number in box 8 (Primary Recipient) or, if applicable, your VAT registration number in box 44h (Registered Recipient)

• „G” as payment method in field 47e

If you use the customs declaration service

You must provide your VAT registration number at header level in data element 3/40.

VAT will be charged based on yours EORI and it will only be at declaration level.

If you are acting on behalf of someone else

If you have been authorized to act on behalf of your client, you must provide their client number EORI or the VAT registration number in the customs declaration.

If you are importing goods in shipments with a value not exceeding £ 135

Learn about the treatment of VAT on goods sold abroad:

• UK customers using the marketplace as of 1 January 2021

• directly to customers in the UK from 1 January 2021

These rules will not apply to the import of shipments containing excise goods, you can choose to settle the import VAT in the VAT declaration for these shipments.

What do you need to do next

If you chose to settle the import VAT on the VAT declaration on the customs declaration, you will have to settle the import VAT after filling in a VAT declaration.