Are You Maximizing Your Benefits from Import VAT Deferral?

HMRC Guidance: How to use your duty deferment account

Find out how to use your duty deferment account so you can delay paying most duties and import VAT.

• Deferral Process and Eligibility: Businesses can use a duty deferment account to delay payment of customs duties and import VAT when completing declarations. However, deferral is not allowed if the account limit is exceeded, if there are payment compliance issues, or if the account has been suspended.
• Payment Timeline: Deferred duties and import VAT must be paid in total by the 16th of the following month, or the next working day if the 16th falls on a non-working day. Businesses can typically defer payments for 2 to 6 weeks, providing approximately 30 days of credit.
• Account Management and Compliance: Businesses must manage their duty deferment accounts carefully, ensuring they do not exceed guarantee levels. Changes in company details must be reported promptly, and failure to comply can result in suspension or revocation of the deferment facility. Accurate record-keeping and prompt payment are essential to maintain account status.

Contents

1. What you can defer
2. When you must pay
3. How to pay
4. If the amount due is wrong
5. Exceeding your guarantee level or deferment limit
6. Making changes to your account
7. Duty deferment statements

Source: gov.uk

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