The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note looks at when a business is entitled to account for import VAT under postponed accounting.
For importing goods from outside the UK generally, see the Imports ― overview (rules from 1 January 2021) guidance note. For movements of goods and Northern Ireland, see the Northern Ireland ― overview guidance note.
In-depth commentary on the legislation and case law can be found in De Voil Indirect Tax Service V3.305.
Postponed accounting is designed to address the cash flow issues that would arise for many businesses if they were obliged to pay import VAT at the point that they import goods into the UK.
In essence, postponed accounting allows a business to account for import VAT via its VAT return rather than at the point that goods come into the UK. If a business is entitled to full VAT recovery, this is effectively an administrative entry; the import VAT is accounted for but it is immediately recovered on the same VAT return. Consequently, a cash flow cost is avoided.
Postponed accounting was introduced from the end of the Brexit implementation period. VAT-registered businesses can account for import VAT under postponed accounting (without a requirem
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The substantial shareholding exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. Conversely, if losses are generated by the disposal and the SSE conditions are
This guidance note explains how to calculate the amount of tax that arises under the lifetime charge. In general terms the lifetime charge will apply to individuals who transfer property into a trust that is subject to the relevant property regime. See the Chargeable transfers and Occasions of
Maintenance payments are payments made by a taxpayer to their former or separated spouse for the maintenance of that former spouse or their children. To obtain any tax relief for maintenance payments, one of the couple must have been born before 5 April 1935 and the payments must be made by virtue
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.