Postponed VAT Accounting

Postponed VAT Accounting (PVA) lets you account for import VAT on your VAT Return instead of paying it at the border. Here’s how to use it.

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Key facts

  • Available to all UK VAT-registered businesses importing goods.
  • Include import VAT in Box 1 and Box 4 of your VAT Return — making it cash-flow neutral.
  • Download your monthly PVA statement from HMRC’s online service.
  • You must keep the statement as evidence for your input VAT claim.

How Postponed VAT Accounting Works for Imports

PVA is a mechanism that lets you declare and recover import VAT on the same VAT Return, rather than paying the VAT at the border and reclaiming it later. This avoids a significant cash-flow disadvantage.[1]

How It Works

  1. When making a customs declaration, select PVA as your method of accounting for import VAT
  2. No VAT is collected at the border
  3. HMRC creates a monthly PVA statement showing the import VAT amounts
  4. Include the VAT in Box 1 (output VAT) and Box 4 (input VAT) of your next VAT Return

The two entries cancel each other out, so there’s no net VAT to pay (assuming you’re entitled to full recovery).[1]

Getting Your PVA Statement

Download your statement from HMRC’s online service:[2]

  • Sign in to your Government Gateway account
  • Navigate to “Get your postponed import VAT statement”
  • Statements are available monthly, usually by the 6th working day of the following month
  • Keep the statement for 6 years as evidence for your input VAT claim

Completing Your VAT Return with PVA

BoxInclude
Box 1Import VAT amount (from PVA statement)
Box 4Same import VAT amount (reclaimable)
Box 7Net value of imports

Tip: PVA is especially valuable for businesses that import regularly. Without it, you’d pay VAT at the border and wait weeks to reclaim it on your next VAT Return.

Frequently Asked Questions

What is Postponed VAT Accounting?

Postponed VAT Accounting (PVA) lets UK VAT-registered businesses account for import VAT on their VAT Return instead of paying it at the border, making it cash-flow neutral.

How do I use PVA on my VAT Return?

Include the import VAT amount in both Box 1 (output VAT) and Box 4 (input VAT) of your VAT Return. The two entries cancel each other out, so there is no net VAT to pay.

Where do I get my PVA statement?

Download your monthly Postponed Import VAT Statement from HMRC’s online service via your Government Gateway account. Statements are usually available by the 6th working day of the following month.

Do I have to use Postponed VAT Accounting?

No, PVA is optional. You can still pay import VAT at the border and reclaim it on your next VAT Return, but PVA avoids the cash-flow delay of waiting for the refund.

Further Reading

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Sources

  1. Check when you can account for import VAT on your VAT Return — GOV.UK
  2. Get your postponed import VAT statement — GOV.UK
  3. Customs declarations for imports — GOV.UK

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