Postponed accounting for UK imports
Postponed accounting for VAT on imports from UK and other non-EU countries is now available to all VAT registered traders from 1st January 2021.
This scheme:
- provides for postponed accounting for VAT on imports from non-EU countries. Before this you had to pay at point of entry.
- enables you to account for import VAT on your VAT return
- allows you to reclaim VAT at the same time as it is declared in a return. This is subject to normal rules on deductibility.
Postponed Accounting arrangements enable an accountable person to self-account for VAT on imports on their VAT return so that import VAT may, subject to the usual rules on deductibility, be reclaimed at the same time as it is declared on a VAT return.
This will be a straightforward reverse charge transaction, without the need to pay the import VAT at the point of importation.
In other words, it will be recorded in the VAT return as VAT which is simultaneously deducted on a ‘purchase’
and charged on a ‘sale’ in a similar way to the manner in which intra- community acquisitions are currently recorded on the return.
Postponed Accounting will not apply to goods purchased from Northern Ireland. These purchases will be treated as EU intra-community acquisitions as at present.
Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie