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What is postponed accounting?

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Summary

This guide explains what Postponed VAT Accounting is, which you can process in Sage 50 Accounts.

Description

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.

Resolution

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:

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