Changes to postponed VAT accounting

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

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Our Indirect Tax Director, Ruth Corkin has been part of the team reviewing Brexit legislation. The team’s input has helped address some key shortcomings in the arrangements for leaving the EU, in particular around postponed VAT accounting. As a result HMRC have updated their guidance and the following outlined changes.

“The ‘Get your postponed import VAT statement’ page is now live. From there, importers can access the statement service.

Businesses that already have access to CDS will go from this page, straight to a PVA statement page.  They will be able to view and download their statements online, once the statements have been created.

Businesses without access to CDS will be automatically directed to subscribe to CDS first.

Note that for CHIEF users, this subscription to CDS will only allow them to access their postponed import VAT Statements.  They can continue to use CHIEF to make customs declarations.

The CDS application process is straightforward and takes only a few minutes.  Once the application has been processed and accepted, the importer can access their PVA statement page. The new online monthly statements are not available yet. So users accessing the service will go to a landing page that says, “There are no statements available to view yet.”

From 1 January 2021, when an importer completes the customs declaration (on CHIEF or CDS) and indicates that they’ll be accounting for import VAT on their VAT Return, that import VAT will be shown on their monthly statement.   Statements will be published online in the first half of the month and will show the total import VAT postponed in the previous month.”

If you need any assistance with this please contact Ruth Corkin on ruth.corkin@hhllp.co.uk or 03300243200 and she’ll be happy to help.

Do you need extra information?
Ruth Corkin

Ruth has been involved with VAT for over 30 years. She started her VAT career as a Customs and Excise Officer in Essex and then moved into consultancy with a variety of well-known accountancy firms. She is well known in the VAT world and is the proud author of many articles and technical works.

Contact Ruth at ruth.corkin@hhllp.co.uk or on 01908 713 860