Postponed VAT Accounting (PVA): How UK Importers Account for Import VAT in 2026
Postponed VAT accounting lets a VAT registered business bring goods into the country and account for the import VAT on its next VAT return, instead of handing cash to HMRC at the border and waiting to claim it back. For most importers the amount you owe and the amount you reclaim are the same figure, so the real cost of the VAT is nothing. This guide explains how the scheme works in 2026, who can use it, how to set it up on your customs declaration, and how to fill in each box on your return, with a calculator to check the numbers.
What is postponed VAT accounting?
Postponed VAT accounting is the way most UK businesses now deal with the VAT due on goods they import. Rather than paying import VAT when the goods arrive and reclaiming it weeks later, you declare the VAT due and the VAT you are reclaiming on the same return. HMRC introduced it on 1 January 2021, when the Brexit transition period ended and imports from the European Union began to follow the same VAT rules as the rest of the world. It is a permanent part of the system, not a temporary relief.
How does postponed VAT accounting work?
When your goods reach the UK border, the person handling the customs entry chooses to postpone the import VAT rather than pay it. Nothing leaves your account at that point. HMRC then produces a monthly statement showing the total import VAT you postponed. You take that figure onto your VAT return, entering it once as VAT due and once as VAT reclaimed. For a business that can recover all of its input tax, the two entries offset each other and the net VAT position is nil. If your business is partly exempt, you can only reclaim the share of import VAT that relates to your taxable activities, so a small amount may remain payable.
Who can use postponed VAT accounting in 2026?
You can use postponed VAT accounting if your business is registered for VAT in the UK and you have a GB EORI number for importing. You do not need to apply for it or ask HMRC for approval. It is available for goods brought into Great Britain from anywhere in the world, and for goods brought into Northern Ireland from outside the UK and the European Union.
If you are not registered for VAT, you cannot postpone. You pay the import VAT at the border and, because you are not registered, you cannot claim it back, so it becomes a real cost. Businesses based outside the UK can still use the scheme, but they need someone to handle the customs entry for them and must be shown as the importer on that entry.
Is postponed VAT accounting compulsory?
No. As of June 2025, HMRC removed the last situations where postponing was mandatory, so in 2026 the scheme is optional in every case. You are free to pay import VAT at the border instead if that suits your accounting, for example through a duty deferment account. Most importers choose to postpone because it protects cash flow, but the choice is yours and it is made entry by entry.
How to choose PVA on your customs declaration
Postponed VAT accounting is selected on the import declaration in the Customs Declaration Service. Whoever completes that declaration makes the choice, so if a courier, freight forwarder or customs agent clears the goods for you, they decide unless you tell them otherwise. Once a declaration is submitted you cannot change how the VAT was accounted for on it, which makes clear instructions important.
- Make sure you are registered for VAT and hold a GB EORI number that starts with the letters GB.
- Tell your customs agent or courier, in writing, that you want to postpone import VAT on your shipments.
- Ask them to enter your own EORI and VAT details as the importer on the declaration, not their own.
- Keep a copy of that instruction, so there is a record if a statement later looks wrong.
- After the month ends, download your postponed import VAT statement and use it to complete your return.
Import VAT calculator
Enter the customs value of your goods and any import duty to see the import VAT and how it maps onto your VAT return. Import VAT is worked out on the customs value plus any duty and certain incidental costs, then charged at the standard rate for most goods.
Box 4 assumes you can reclaim all of the import VAT. A partly exempt business reclaims only the taxable share, so its net cost would be higher.
Which VAT return boxes does PVA use?
Three boxes on the return carry your postponed imports, and the figures come straight from your monthly statement. The entries in Box 1 and Box 4 are usually the same, which is why a fully taxable business feels no cash effect.
| Box | What goes in it |
|---|---|
| Box 1 | The import VAT due for the period on goods you postponed |
| Box 4 | The import VAT you are reclaiming for the period, under the normal input tax rules |
| Box 7 | The net value of the imported goods, with no VAT included |
Because you keep VAT records and file through Making Tax Digital software, these figures are entered into the return through your Making Tax Digital compatible package. If you want a refresher on the return itself, our guide on how to do a VAT return walks through every box.
Getting your monthly postponed import VAT statement
Your postponed import VAT statement is the record of how much import VAT you postponed in a given month, and it is your evidence for the figures on the return. You view and download it online through the Customs Declaration Service using your own Government Gateway sign in. You cannot use an agent sign in to reach your own statements.
- Statements are usually ready by the tenth working day of the month, covering the imports you postponed the month before.
- Each statement shows the total import VAT postponed, with a summary and a line by line breakdown of entries.
- You can only reach a statement for six months before it is archived, so download and save every one for your records.
What if your statement is missing or wrong?
If a statement is late or you cannot reach it, you are allowed to estimate the import VAT for that period, put the estimate on your return, and correct the difference on your next return once the real statement appears. If a statement double counts an entry, adjust the figure to the correct amount and account for that corrected total. If statements keep failing to appear, contact the HMRC imports and exports helpline rather than guessing month after month.
Records and evidence: your statement and the C79
The evidence you keep depends on how the VAT was handled at the border. If you postponed, the monthly statement is your proof for reclaiming the VAT. If you paid the VAT at import instead, HMRC issues a C79 certificate, and that is your proof. You should never use both for the same goods, as that would claim the VAT twice.
| Feature | Postponed VAT accounting | Paying at the border |
|---|---|---|
| Evidence to reclaim | Monthly postponed import VAT statement | C79 import VAT certificate |
| When the VAT is settled | On the VAT return | At import, often by duty deferment |
| Cash effect | None for a fully taxable business | VAT paid now, reclaimed later |
| Where you get it | Customs Declaration Service | Customs Declaration Service |
Postponed VAT accounting and the Flat Rate Scheme
Flat rate users handle postponed import VAT a little differently. You do not include the postponed import VAT in your flat rate turnover. Instead you work out your flat rate VAT as normal, then add the import VAT due on your postponed goods to Box 1 afterwards. Reclaiming that import VAT in Box 4 still follows the input tax limits that come with the Flat Rate Scheme, so many flat rate businesses cannot recover it in full.
Postponed VAT accounting for Northern Ireland
Goods brought into Northern Ireland from outside the UK and the European Union follow much the same import rules as Great Britain, and a VAT registered business can postpone the import VAT on its return. Consignments of £135 or less are handled through the UK VAT system at the point of sale rather than as an import. Movements of goods between Great Britain and Northern Ireland are treated as domestic supplies, so the seller charges VAT on the invoice and the buyer reclaims it in the usual way, rather than postponing it as an import.
When to postpone and when to pay at the border
Postponing suits almost every VAT registered importer, because it removes the cash gap between paying VAT at the border and reclaiming it. Paying at the border can still make sense in a few cases, for example if you are not yet registered, if a one off import is simpler to clear that way, or if your buyer is arranging the entry. The table below shows how the consignment value decides whether import VAT and postponing even come into play.
| Consignment | How the VAT is handled | PVA available |
|---|---|---|
| £135 or less, sold to a consumer | Supply VAT charged at the point of sale | No import VAT arises |
| £135 or less, VAT registered buyer | Reverse charge by the buyer | No import VAT to postpone |
| More than £135 | Normal import VAT and customs rules | Yes |
| Excise goods, any value | Import VAT applies on release | Yes |
Common PVA mistakes to avoid
- Letting a courier pay the VAT at the border by default, because you never asked them to postpone in writing.
- Using your own purchase records for the return instead of the figure on the official statement, then never reconciling the two.
- Leaving an estimate on a return and forgetting to correct it once the real statement arrives.
- Claiming the same import VAT twice, once from a statement and once from a C79, for the same goods.
- Missing the six month window to download a statement, leaving you without evidence for the reclaim.
- Including postponed import VAT inside flat rate turnover rather than adding it to Box 1 after the flat rate sum.
Working out the VAT on a shipment or an invoice? Use our free tool to add or remove VAT at any rate in seconds.
Open the VAT calculatorFrequently asked questions
No. There is no application or approval. As long as your business is registered for VAT and you have a GB EORI number, you or your customs agent simply choose to postpone the import VAT on the customs declaration.
The scheme itself is free. For a fully taxable business the import VAT you declare in Box 1 is matched by the VAT you reclaim in Box 4, so the net cost is nothing. A partly exempt business can only reclaim the taxable share, so some VAT may remain payable.
Statements are usually available by the tenth working day of the month, covering the imports you postponed during the previous month. You reach them through the Customs Declaration Service using your own Government Gateway sign in.
You can estimate the import VAT for that month, enter the estimate on your return, and adjust for any difference on your next return once the real statement appears. Keep your own import records so the estimate is close.
Yes, but only when you pay import VAT at the border rather than postpone it. The C79 is your evidence for reclaiming VAT you paid at import. If you postponed, your monthly statement is the evidence instead, and you should not use both for the same goods.
Yes. Keep the postponed import VAT out of your flat rate turnover, work out your flat rate VAT, then add the import VAT due to Box 1. Reclaiming it in Box 4 still follows the input tax limits of the Flat Rate Scheme.
Yes, if you are registered for UK VAT. You will need someone to handle the customs entry for you, and you must be shown as the importer on that entry, with your own EORI and VAT details rather than the agent’s.
Sources: HMRC, Check when you can account for import VAT on your VAT Return · HMRC, Complete your VAT Return to account for import VAT · HMRC, Get your postponed import VAT statement · HMRC, Understanding your monthly postponed import VAT statements · GOV.UK, VAT registration thresholds and VAT rates. Figures reflect the latest published HMRC guidance as at July 2026.