Source gov.uk
KPMG:
This guidance sets out that from 1 January 2021, businesses will be able to account for import VAT on their VAT Return for goods imported from anywhere in the world. Import VAT will be declared and recovered on the same VAT Return (postponed accounting), rather than businesses having to pay the VAT upfront and recover it later.
The guidance goes on to set out the circumstances where businesses can account for import VAT on their VAT return. Businesses will not be able to account for import VAT on the VAT Return if they are authorised to use simplified declarations for imports and complete their simplified frontier declaration before 1 January 2021. This will be the case even where they complete a supplementary declaration after this date. Businesses eligible to defer submitting supplementary declarations for up to 6 months, must account for import VAT on their VAT Return. This guidance does not cover consignments under £135 to be sold in the UK where different rules will apply from January.
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