Complete your VAT Return to account for import VAT
How to account for import VAT on your VAT Return if you're using postponed VAT accounting.
Overview
If you’re a UK VAT-registered business and account for import VAT on your return, you’ll need:
- details of any customs entries you’ve made in your own records
- copies of your monthly postponed import VAT statement (when available)
Unless you’ve delayed your import declaration, each of your statements will show the total import VAT postponed for the previous month. Supplementary declarations will appear against the month they are submitted.
Find out more about how to get a postponed import VAT statement and how to understand and use your statements.
How to complete your VAT Return
You must account for postponed import VAT on your VAT Return for the accounting period which covers the date you imported the goods.
The normal rules apply for what VAT can be reclaimed as input tax and your monthly statement will contain the information to support your claim.
Box 1
Include the VAT due in this period on imports accounted for through postponed VAT accounting. You can get this information from your online monthly statement, or you must estimate the amount if you delayed your import declaration and do not have a statement.
Box 4
Include the VAT reclaimed in this period on imports accounted for through postponed VAT accounting. You can get this information from your online monthly statement, or you must estimate the amount if you delayed your import declaration and do not have a statement.
Box 7
Include the total value of all imports of goods in this period, not including any VAT.
How to adjust errors for import VAT
If you have accounted for import VAT on your VAT Return and later find out the amount has changed or is incorrect, you must either:
- amend any nil net tax errors on your next VAT Return (where the import VAT adjustment in box 1 will be equal to the input tax claim in box 4)
- follow the error correction procedures
You should continue to use existing methods for any over or underpayments of customs duties. You must not include import VAT in any of these adjustments to HMRC.
If there are specific entries missing from your monthly statement
If you’re a member of a VAT group or are closely related to another company, check if the entry is showing on their statement instead.
If you used an agent to complete your customs declaration, ask them to confirm that the import VAT was allocated to the correct EORI number.
If you use a VAT accounting scheme
Flat Rate Scheme for small businesses
You should not include import VAT accounted for using postponed VAT accounting in your flat rate turnover. The VAT due on any imports should be added to box 1 of the VAT Return after you have completed your Flat Rate Scheme calculation.
VAT Cash Accounting Scheme
You cannot use the VAT Cash Accounting Scheme for goods you import or remove from a customs warehouse.
If you delayed your import declaration for goods moved on or before 30 January 2024
You must account for import VAT on your VAT Return if both:
- your goods are not controlled
- you delayed declarations by making an entry in your own records without authorisation for goods you brought into Great Britain (England, Scotland and Wales) from Ireland on or before 30 January 2024
To complete the boxes on your VAT Return, you’ll need to estimate the import VAT due from your records of imported goods.
When you submit your delayed declaration, you must select that you’re accounting for VAT on your VAT Return. Your next online monthly statement will show the amount of import VAT due on that declaration. You’ll then be able to:
- adjust your estimate
- account for any difference on your next VAT Return
If you’re a VAT group representative member
You’ll need to collect copies of each member’s import VAT statements, so you can complete the VAT Return for the whole group.
Updates to this page
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Information about what to do if there are specific entries missing from your statement has been added to the 'how to complete a VAT Return if you're having problems with your monthly statements' section.
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Information about an issue with duplicated entries on some monthly statements has been added to the 'how to complete a VAT Return if you're having problems with your monthly statements' section. Out of date information has been removed.
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Information about how to resolve an issue affecting declarations made on 30 December 2022 where postponed VAT accounting was used to account for import VAT has been added to the 'How to complete a VAT Return if you're having problems with your monthly statements' section of the guide.
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Information on checking your previous VAT Returns if you had problems with your monthly statements has been updated.
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If you're having problems with your June 2022 statements we have added information to confirm that if you downloaded your June 2022 statement before 13 July 2022, you should not use that statement to complete your VAT Return. To access your replacement statement, go to the statement page on your dashboard and download the version that has replaced the older version. Your new statement will have a publication date of 18 or 19 July.
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If you're having problems with your June 2022 statements we have added information to confirm that you should not download or use figures on statements that were published from 4 July 2022 up to and including 8 July 2022.
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Information has been added about some technical problems with postponed import VAT statements for June 2022.
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The problem with April 2022 postponed VAT statements has now been fixed. Users can now access replacement statements on their dashboard.
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Information has been added about some technical problems with postponed VAT statements for April 2022.
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The issue with March 2022 postponed import VAT statements not displaying for some users has now been resolved.
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Information has been added to the 'How to complete a VAT Return if you're having problems with your monthly statements' section for importers who have been having issues accessing their March 2022 statements.
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From 1 June 2022, businesses registered under the Flat Rate Scheme should no longer include imports accounted for under postponed VAT accounting within their flat rate turnover. These should be accounted for separately, outside of the Flat Rate Scheme.
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Existing arrangements for customs checks on goods from Ireland will continue after 1 January 2022. Changes have been made to the "If you delay your customs declaration" and "Transactions or movement of goods on or after transition period sections".
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Information about how to adjust errors for import VAT has been added.
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Information about how to complete a VAT return if you're having problems with your monthly statements, when you're authorised to use simplified declarations for imports has been added.
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Information about problems accessing January 2021 and February 2021 statements and completing your monthly and quarterly VAT Returns has been added.
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The end date when you must account for import VAT on your VAT Return if you delay your customs declaration or use a simplified customs declaration has been changed from 30 June 2021 to 31 December 2021.
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The information about January and February statements has been updated.
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Information about February entries on your January statement has been added.
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Information has been added to explain how to complete your return if you cannot download your postponed import VAT statements. In addition, a new section 'If you're a VAT group representative' has been added to the page.
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New sections 'If you use a VAT Accounting Scheme' and 'Transactions or movements of goods which span the end of the transition period' have been added to the page.
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Information on getting access to your postponed import VAT statement has been added.
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Details on how to estimate your import VAT on your VAT return has been added. Additional guidance on your statements and how long they will be available has been added.
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Welsh translation added.
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First published.