Postponed VAT Accounting, introduced in both the UK and Republic of Ireland in January 2021, improves business cash flow for imports. Let's take a look at how it works.
Postponed Accounting means you can account for Import VAT on goods arriving in the UK or Ireland on a VAT Return rather than having to pay the VAT as soon as the goods arrive at the border.
- UK - You can use Postponed VAT Accounting for all Rest of the World (ROW) imports. For Great Britain this now includes imports from the EU.
- Northern Ireland - You can use Postponed VAT Accounting, but it's only relevant for Non EU imports.
- Republic of Ireland - Postponed Accounting is available for all ROW imports. This includes imports from Great Britain, but not from Northern Ireland.
How to process Postponed VAT Accounting in your software: