Efdcargo Co., Ltd.
Efdcargo Co., Ltd.

UK FBA Service-Postponed VAT Accounting

The UK customs clearance policy may be able to help us, it may bring you new inspiration, thank you for reading.

On January 1, 2021, the United Kingdom officially completed Brexit. At this time, the UK's import and export trade policies began to slowly change. Today we bring you another kind of customs clearance service-VAT Deferred Payment Service. As the name suggests, we will not need to pay high amounts of VAT again, The seller's platform directly conducts VAT settlement with the British Taxation Department (HMRC). This kind of operation will no longer pay high value-added tax, and can also greatly reduce the impact of exchange rate changes. This mode of operation is called-postponed VAT accounting(PVA), Sellers who have registered for UK VAT can enjoy the postponed VAT accounting policy.

From January 1,2021, Sellers can choose PVA during customs clearance. That is to say, when the goods are imported, the seller does not need to pay the import VAT tax.
The British Taxation Department (HMRC) will generate an online deferred import VAT statement for cross-border sellers who do import every month as a proof of deferred input tax;
When the seller declares the VAT, He needs to directly fill in the initial VAT amount that should be paid for the import in the VAT declaration form, and there is no need to pay the imported VAT.

How to do it?
Only need information as below:
(1) VAT valid record
(2) Customs clearance power of attorney–POA
(3) VAT registration information

Apply for the PVA model to pass 100%?
According to the limited cargos data, the success rate of applying for customs clearance in PVA mode depends on whether the sales platform corresponding to the VAT number and EORI number is supervised by the customs.
For example: the Amazon platform has a success rate of 80-90%

How to judge the application is successful?
For the time being, we cannot confirm in advance whether the application for PVA is successful. Generally, it can only be determined by the customs during the formal customs clearance.
If successful, we will not need to pay on behalf of VAT, if unsuccessful, we still need to pay on behalf of VAT.

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