The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Import VAT and customs duty are normally payable at the time when goods are imported into the UK or released from a customs or excise warehouse, and must normally be paid before HMRC will release the goods into free circulation within the UK. However, providing certain criteria are satisfied, it is possible for authorised businesses to delay payment of import VAT and customs duties under the Duty Deferment Scheme. The charges are due on imports and certain home-produced or home-manufactured products.
The main benefits for a business having a deferment account are:
HMRC has announced that, during the disruption caused by the coronavirus (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 coronavirus on VAT and taxes more broadly, see the Tolley COVID-19 Toolkit .
The following importers can delay payment of import VAT via the Duty Deferment Scheme:
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