Commentary

V7.248 Imports and acquisitions—deferment of VAT

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.248 Imports and acquisitions—deferment of VAT

Part V7 Tax planning | Commentary

V7.248 Imports and acquisitions—deferment of VAT

Ordinarily, import VAT is payable at the point when the goods arrive at the UK border. However, HMRC allow an importer to delay paying import VAT at the time the goods arrive in the UK providing he holds a Deferment Approval Number (DAN). An agent who enters goods for an importer or owner may also use the deferment scheme.

The two main benefits for a business having a deferment account are:

  1.  

    •     cash flow is improved by the delay in payment, and

  2.  

    •     the process of importation is not delayed whilst payment of VAT and

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