Record an invoice from an import agent

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Solution ID:

222001000101321

Last Modified Date:

Fri Jun 26 10:52:58 UTC 2026

Taxonomy Path:

Case category//How do I...//processing

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Record an invoice from an import agent

Description

When importing goods into Great Britain from outside the UK or from outside the EU to Northern Ireland, Import VAT can be payable.

Choose whether to use postponed VAT accounting, if you use an import agent or freight forwarder to manage your imports.

Read import duty and VAT to learn how postponed VAT accounting differs from paying import VAT at the border.

Cause

Resolution

Before recording the invoice, you need to set up your supplier as an import agent. Read creating a supplier contact for more information.

To help you track the money paid in import VAT and duty, set up a separate ledger account. Follow our article to create a new ledger account.

▼ Set up ledger code

The way you set up the ledger code is largely down to your preference, but here’s an example of the detail you could include:

Name: For example, Import VAT and Duty
Category: Direct Expenses
Nominal code: Enter a code of your choice, such as 5101. On our default chart of accounts, direct expenses are usually in the 5000 range
VAT rate: HMRC generally charges import VAT on duty at the same rate as the imported item. If you normally import items at different rates, you can leave this clear. If you do choose a rate, you can still change this when you enter your invoice

Record the invoice from the import agent

When using postponed accounting:

Go to Purchases and select Purchase Invoices.
Select New Invoice.
Choose your import agent for the Supplier*.
Fill in the invoice date and references then select Use postponed accounting to deal with import VAT.
Enter the Product/Service, Description, Ledger Account, and Price.
Select the VAT Rate* you normally use for a domestic purchase.
On the next invoice line, add your import duty ledger account.
Choose the relevant VAT Rate* and overwrite the VAT* value.

▼ Do I need to use a VAT only invoice line?

Not always.

A VAT-only invoice line lets you record the import VAT separately from the goods and duty. This can make reporting and reconciliation easier.

Postponed accounting automatically reverses the VAT. When the transaction appears on the VAT Return, you pay and reclaim the VAT in the same period.

If your import agent provides an estimated VAT amount, you can enter this by overwriting the VAT* value on the invoice.

Record the invoice from the import agent without postponed accounting

The process to enter the invoice is the same, but don't select Use postponed accounting to deal with import VAT. The import agent estimates the VAT amount, which you can enter using the same steps as above.

Your monthly statement, and when to adjust the VAT Return

HMRC provides a Monthly Postponed Import VAT Statement (MPIVS).

This shows the import VAT you've chosen to account for using postponed VAT accounting. HMRC won't end this directly to you, sign into the Customs Declaration Service to download the statement.

The statement could contain figures different to the import VAT figures entered on your invoices. This is when you adjust your VAT figures to reflect the monthly statement.

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