From 1 January 2021, VAT-registered businesses that import goods into the UK will be able to take advantage of the new postponed VAT system. Importers can potentially use the postponed VAT system to improve cash flow. Here’s what you need to know. VAT on goods imported into the UK has often been payable at the point of entry. By taking advantage of postponed VAT, businesses will be able to opt instead to account for the VAT on their VAT return. By so doing, they can potentially gain a cash flow advantage. Of course, postponed VAT is just one element of the overall VAT framework. Businesses should consult an expert to find out how to leverage VAT regulations to optimise overall cash flow more effectively.
Source: vatglobal.com
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