Simplified Import VAT Accounting (SIVA)

Produced by Tolley
Simplified Import VAT Accounting (SIVA)

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Simplified Import VAT Accounting (SIVA)
  • Impact of the Union Customs Code on SIVA
  • Benefit of using SIVA
  • Criteria to use SIVA
  • SIVA application process
  • Next steps after receiving SIVA approval letter
  • Deferment schedule (form SIVA 2)
  • Increasing the DAL
  • Returning the SIVA 2
  • Mistakes
  • More...

The aim of the SIVA scheme is to reduce the costs paid by businesses importing goods into the UK. A business using SIVA is able to reduce the amount of financial guarantee that it has to provide if it uses adeferment scheme to delay payment of any import VAT and customs duties due. An importer, agent or warehouse keeper can use the Duty Deferment Scheme to pay any VAT and duties due on imported goods on an agreed payment day each month, rather than at the time of importation. See the Delaying payment of import VAT guidance note for more information. If the business is authorised to use the Duty Deferment Scheme, or is about to apply for authorisation, the business may be able to reduce the amount of financial guarantee it needs by also applying for SIVA.

Businesses that are authorised to use the SIVA will not have to guarantee the import VAT they defer and the guarantee will only cover import duties. In order to use SIVA the business will need to be VAT registered and meet certain other conditions (see below). If the business is successful in being approved to use SIVA, the business will need to operate the scheme correctly and continue to meet HMRC’s conditions. If the business gets approval to use SIVA, it will still be required to have amaximum deferment limit each month to cover the total cost of all of the import taxes due. However, the guarantee will only have to cover the amount of duties that will be deferred. As aresult, the business will be able to defer the VAT without having to provide any security.

Some general information on importing goods can be found in the Importing goods from outside the EU and Delaying payment of import VAT guidance notes.

Impact of the Union Customs Code on SIVA

The Union Customs Code (UCC) legislation, Commission Regulation 952/2013, came into force on 1 May

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