As of 1st January 2021, businesses that import goods into the UK can use a new system called ‘Postponed VAT Accounting’.
The main goal of this new system is to defer the payment of import VAT so there’s no negative impact on the cash flow. It means businesses will not need to pay the VAT immediately upon entry to the UK, and instead it’s recorded on the VAT return.
The scheme is open to all VAT registered companies who are importing goods from outside the UK.
Director of Accounting