Commentary

V7.249 Imports—simplified import VAT accounting (SIVA)

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.249 Imports—simplified import VAT accounting (SIVA)

Part V7 Tax planning | Commentary

V7.249 Imports—simplified import VAT accounting (SIVA)

The deferment system explained at V7.248 can cause problems for certain businesses trying to get a sufficient level of guarantee from their bank to cover the VAT and duty payable to HMRC in a typical month.

An arrangement is available for importers who hold a deferment account (or who are applying for one), to enable them to reduce the level of financial guarantee required to operate it for VAT purposes only. Customs and excise duties must still be fully secured.

The arrangement, known as SIVA, can apply if applicants can satisfy the following criteria:

  1.  

    •     they

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