Brexit: Accounting for import VAT On your VAT Return

From 1 January 2021, you’ll need to make changes to how you complete your VAT Return if you’re a UK VAT-registered business and account for import VAT on your return for goods you import into: Great Britain (England, Scotland and Wales) from anywhere outside the UK Northern Ireland from outside the UK and EU.

You’ll need details of the imports to be included in the return. This will include:

any customs entries you have made in your own record.
copies of your monthly postponed import VAT statement, when available.

Unless you have delayed your customs declaration, each statement will show the total import VAT postponed for the previous month. Your statements will become available to view in the first half of each month.

Accounting for import VAT on your VAT Return means you’ll declare and recover import VAT on the same VAT Return, rather than having to pay it upfront and recover it later. The normal rules about what VAT can be reclaimed as input tax will apply. You can read more on the gov.uk website here.You can also use the Brexit checker here to get a personalised list of actions for you and your business.

Need more information?

We offer a wide range of services for companies who work with overseas customers. Our team of chartered accountants have a wealth of experience in a broad range of sectors and can help you with the Brexit transition. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

0161 962 1855

0207 118 9898

+44 7553 767016

0161 962 1855

0207 118 9898

+44 7553 767016