UK import VAT · cash-flow timing

UK Postponed VAT Accounting (PVA) Checker

Checked against gov.uk PVA guidance · last verified 2026-06-15

Work out the import VAT on a consignment and the cash Postponed VAT Accounting keeps in your business at the border — a cash-flow timing benefit, not a duty saving.

Where the import VAT goesPVA vs pay-at-border

Example: £10,000 of goods → £2,214 import VAT

Pay at the border, reclaim later
At import−£2,214cash leaves your bank
Weeks later+£2,214reclaimed on a later return
Net£0but cash was tied up
With PVA — accounted on the VAT Return
At import£0 outnothing leaves the border
Same returnBox 1 ＝ Box 4declared + reclaimed together
Net£0and no cash ever tied up

PVA keeps£2,214in your account at the border — about£26,568a year across 12 imports.Cash-flow / timing benefit only — the VAT amount is unchanged. Figures from the checker below; change the inputs to match your own consignment.

Your import

From your commodity code. Duty = £270.00.

UK standard rate is 20% (reduced 5%, zero 0%).

Are you eligible?

Import VAT on this consignment

£2,214.00

(goods + freight + duty) × VAT rate

Cash at the border

With PVA
£0.00
Without PVA
£2,214.00

PVA frees up £2,214.00 of cash per import — about £26,568.00 a year across 12 imports.

Eligibility

You can use PVA

  • Registered for VAT in the UK — PVA requires UK VAT registration.
  • Goods imported into Great Britain — PVA applies to GB imports from outside the UK.
  • Has a GB EORI number — needed on the import declaration that elects PVA.

On your VAT Return

  • Box 1 — VAT due on this import via PVA: £2,214.00
  • Box 4 — VAT reclaimed (if fully recoverable): £2,214.00
  • Box 7 — net value of the goods (excl. VAT): £11,070.00

Figures for Box 1 & Box 4 come from your monthly postponed import VAT statement (MPIVS) on the Customs Declaration Service.

UK import VAT & cashflow report

A one-off report you can hand to your accountant or customs agent. It includes:

  • Annual cashflow freed across every import in your year, not just this one
  • Your exact VAT-return Box 1 / Box 4 / Box 7 figures, ready to copy
  • An MPIVS & GB EORI readiness checklist
  • The instruction line to give your freight agent so they elect PVA on the declaration

File the postponed VAT on your return

Once you’ve elected PVA you still have to record it on the VAT Return and reconcile it against your monthly statement (MPIVS). Lovat is VAT registration, compliance and filing software for UK and EU sellers that handles that return.

See Lovat VAT software

Affiliate link — we may earn a commission if you sign up, at no extra cost to you. We are not affiliated with HMRC. This is not tax advice.

Estimate, not tax advice. Follow HMRC guidance and your accountant. PVA eligibility and the VAT-return treatment depend on your VAT registration and the goods you import.

Last verified:

How this calculator works

Results are computed locally in your browser from the documented formula — no inputs are sent to a server. Sources, rates, and assumptions are listed in the project's product intent map; Stage 2 replaces this text with the concrete methodology and dated sources.

The four things to know about PVA

  • UK VAT-registered importers into Great Britain with a GB EORI — you just elect PVA on the customs declaration. No HMRC approval needed.
  • Import VAT goes in Box 1 (due) and Box 4 (reclaimed) of the same return — if fully recoverable it cancels to net £0; the goods value goes in Box 7.
  • You take the Box 1 / Box 4 figures from your monthly postponed import VAT statement (MPIVS) on HMRC’s Customs Declaration Service.
  • Non-established taxable persons importing into GB can use PVA too — but you cannot change the election once the declaration is submitted, so decide up front.

Sources: Check when you can account for import VAT · Complete your VAT Return for import VAT · Get your postponed import VAT statement

What is Postponed VAT Accounting (PVA)?

Postponed VAT Accounting lets a UK VAT-registered business declare and recover import VAT on the same VAT Return, instead of paying it upfront at the time of import. It has been available since 1 January 2021 and you do not need any approval from HMRC to use it. Without PVA, you pay the import VAT in cash when the goods arrive and only get it back on a later return — so the cash is tied up in the meantime. With PVA, no import VAT leaves your business at the border; it is accounted for on the return.

PVA is a cashflow timing benefit, not a saving of the VAT itself. If the import VAT is fully recoverable, the amount you declare and the amount you reclaim cancel out on the same return.

Who is eligible?

To use PVA on the import you must:

  • be registered for VAT in the UK;
  • be importing goods into Great Britain (England, Scotland or Wales) from outside the UK;
  • have a GB EORI number and include your VAT registration number on the import declaration.

You then choose, on the customs declaration, to account for import VAT on your VAT Return. Note that you cannot change how you account for import VAT once the declaration has been submitted, so the election has to be made up front by you or your freight agent. Non-established taxable persons importing into GB can use PVA as well.

How PVA shows on your VAT Return

Postponed import VAT is recorded across three boxes on the return:

BoxWhat goes in it
Box 1VAT due in the period on imports accounted for through PVA (output VAT).
Box 4VAT reclaimed in the period on imports accounted for through PVA (input VAT, if recoverable).
Box 7Total value of all imported goods in the period, not including any VAT.

You get the Box 1 and Box 4 figures from your monthly postponed import VAT statement (MPIVS) on HMRC’s Customs Declaration Service (CDS). You need to be subscribed to CDS to access it.

The cashflow benefit vs paying at the border

The size of the benefit is simply the import VAT you would otherwise have paid in cash at import. On a consignment worth £10,000 of goods with £800 of freight and 2.5% duty at the 20% standard rate, the import VAT is £2,214 — that is the cash PVA keeps in your business at the border each time, multiplied across the year by how often you import. The checker above projects that annual figure for you. It is a timing benefit only: the VAT amount you owe is unchanged.

Who should use this checker?

Importers, finance teams, ecommerce sellers and freight forwarders working out whether PVA is worth electing, how much working capital it frees up, and exactly which VAT-return boxes the import VAT lands in. It is built for UK VAT-registered businesses importing into Great Britain.

Frequently asked questions

Does PVA reduce how much VAT I pay?

No. PVA changes the timing, not the amount. You declare the import VAT in Box 1 and reclaim it in Box 4 of the same return, so if it is fully recoverable the net cost is nil — but the headline VAT amount is unchanged. The benefit is that no cash leaves at the border.

Do I need approval from HMRC to use PVA?

No approval is required. You choose to account for import VAT on your VAT Return when the import declaration is made. You do need to be UK VAT-registered and have a GB EORI number.

Where do the figures for the VAT Return come from?

From your monthly postponed import VAT statement (MPIVS) on the Customs Declaration Service. It shows the import VAT postponed in the previous month, which you use to complete Box 1 and Box 4.

What VAT rate should I enter?

The UK standard rate is 20%. Some goods are at the reduced rate of 5% or are zero-rated (0%). The duty rate depends on your commodity code. Both are inputs here — the tool does not look up tariffs.

Sources