Commentary

V3.351A Duty deferment and Simplified Import VAT Accounting (SIVA)

Part V3 Supplies, acquisitions and imports

V3.351A Duty deferment and Simplified Import VAT Accounting (SIVA)

V3.351A Duty deferment and Simplified Import VAT Accounting (SIVA)

COVID-19—SIVA

HMRC has announced that, during the disruption caused by the COVID-19 pandemic, importers who are experiencing difficulty in paying, whether immediately or by duty deferment, import duty and VAT may request an extension to the date on which payment becomes due. For further details and discussion of the impact of COVID-19 on VAT and taxes more broadly, see V1.402

Import VAT deferment, deposit and security

The general rule that import duty (and hence import VAT)1 must be paid before the end of the period of ten days beginning with the date following the date on which the person is notified of the liability2, subject to the modifications and exceptions set out below.

Postponed VAT accounting

The general rule that import VAT must be paid before the end of the period of 10 days beginning with the date following the date on which the person is notified of the liability does not apply where the obligation to pay that VAT is postponed without a requirement for a guarantee by virtue of regulations modifying the effect of VATA 1994, s 16(2)3. Such regulations are contained in SI 2019/60 and apply with effect from IP completion day, for which see V3.305. As a result, the need for duty deferment is only likely to be relevant to importers who are required to pay import duty as well as VAT, or to non-VAT registered importer who will not have the benefit of postponed VAT accounting.

Duty deferment system

Duty

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