Deferred Import VAT Reporting has been reintroduced from January 1, 2021. This means that UK registered VAT companies importing goods into the UK can account for Import VAT on their VAT return, rather than having to pay Import VAT on or soon. UK border upon arrival of goods.

The information needed to make the required entries in the enterprise’s VAT return should be obtained from any customs entries made by the enterprise in its own records and copies of the monthly deferred import VAT return.

HMRC has now identified a problem with Import VAT returns for companies authorized to use simplified import returns.

If a supplementary declaration is required, it should be submitted and accepted by HMRC by the fourth working day of the month following:

• simplified declaration at the border is accepted;
• the application for customs clearance has been accepted; or
• the goods issue has been entered in the company’s records.

Entries on the supplementary declaration made at the beginning of the next month for goods imported in the previous month are now assigned to the incorrect monthly import VAT statement.

While HMRC is seeking a solution to this problem, the companies affected may:

• fill in your VAT declaration using the data contained in the import VAT declarations; or
• if they can identify incorrectly assigned entries, manually transfer the data to the correct monthly statement and use the corrected data to complete the VAT return.

More information:

• Tips for completing a VAT return to settle import VAT (HMRC)
• Tips for completing a VAT return to settle import VAT (HMRC)
• Guidelines for completing the import supplementary declaration  (HMRC)
• Problems with import VAT declarations (Tax News, April 6, 2021)