- The PIVA (Postponed Import VAT Accounting) system allows UK VAT-registered businesses to import goods without paying VAT upfront at the border.
- Instead, import VAT is declared and deducted simultaneously on the UK VAT Return, resulting in no immediate cash outflow.
- To use PIVA, businesses must have a UK VAT number and a GB EORI number, and must indicate PIVA on import documents.
- PIVA does not exempt import VAT; it only postpones payment, improving cash flow for importers.
- Before PIVA, importers had to pay VAT at the border and wait months for reimbursement, causing cash flow issues.
Source: eurofiscalis.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United Kingdom"
- ICS2 Required for Goods Moved from Great Britain to Northern Ireland or EU from 2026
- HMRC Updates VAT Group Registration Rules: New Criteria for Revenue Protection Powers
- HMRC Updates VAT Rules for Temporary Medical Staff and Locum Doctors – Refund Guidance Included
- HMRC Guidance: Refunds of UK VAT for non-UK businesses (VAT Notice 723A)
- New VAT Relief Announced for Business Donations of Surplus Goods to Charities from April 2026
