Postponed Import VAT Accounting – HMRC takes a hardline on documentary requirements

• HMRC’s policy on Postponed Import VAT Accounting (PVA) has changed, causing concern for UK importers and Customs Agents.
• Previously, PVA provided cash flow benefits without creating a tax liability, but now HMRC disallows PVA if a customs debt is identified and there is no evidence of written instruction from the importer.
• This could result in assessments for customs duty and import VAT.
• Customs brokers have updated their processes to manage PVA, but issues may still arise if there is no evidence of written instruction.

Source MHA

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