Deferment or postponed VAT accounting is a customs and tax mechanism that allows importers to delay or account for import VAT without paying it immediately at the border. VAT deferment usually lets approved importers pay import VAT later through a deferment account, while postponed VAT accounting allows import VAT to be declared and reclaimed on the VAT return instead of paid upfront. These options can improve cash flow, reduce clearance delays, and simplify import tax management when used correctly.
Postponed VAT Accounting (PVA) is a UK customs mechanism introduced after Brexit that allows UK VAT-registered importers to account for import VAT on their VAT return instead of paying it at the port. This improves cash flow by eliminating the VAT payment that was previously due at the time of import.
- Available to all UK VAT-registered businesses importing goods into the UK
- Import VAT is declared and reclaimed on the same VAT return, resulting in zero net cash impact
- A Monthly Postponed Import VAT Statement must be downloaded from the HMRC portal
- Helps importers avoid significant cash flow impact from VAT payments on each shipment
For related logistics context, see glossary entries on VAT Number, Customs Clearance, Customs Entry, and EORI.
