V3.358B Transitional arrangements for movements of goods from EU member states which straddle IP completion day
With effect from IP completion day, goods moving from an EU member state to Great Britain ceased to be treated as acquisitions (see V3.361) and became imports. Special rules apply to goods which were in transit on IP completion day; these rules are set out below1.
The general position2
Where the time of acquisition (as defined by VATA 1994, s 12, as it applied prior to IP completion day) falls on or after IP completion day, but the goods arrive in Great Britain before IP completion day, acquisition VAT should be accounted for3.
Acquisition VAT already paid4
Where a business has accounted for VAT on the acquisition of goods before the end of the implementation period (eg where the supplier has raised an invoice), but those goods begin their movement to Great Britain after the end of the implementation period, the goods could be subject to both acquisition VAT and import VAT. When this happens, the Great Britain business is required to account for import VAT on their return by using the postponed accounting scheme. It may reduce the amount of import VAT by the amount of acquisition VAT for which it is liable. In cases where the acquisition VAT is equal to or greater than the import VAT, the import VAT entry is reduced to nil5.
Acquisition VAT already paid—postponed accounting not available6
Where Great Britain business is unable to apply postponed accounting, it must pay import VAT
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