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Posted Tue, 29 Mar 2022 11:04:18 GMT by H Harder
Sole trader here, I has been importing ladies clothes into the UK and resell, using a personal EORI number and Fedex to arrange shipping and pay import tax and duty for me, never receive a C79 form and can't see any statement online related to my EORI number. Only see import duty paid on Fedex invoices and I repaid Fedex all. Since 1st Jan 22 I became VAT registered and only found out recently that meant I need VAT EORI and to use PVA system. Since I am using Flat rate Scheme for my VAT return so I guess it doesn't matter to me since I can't reclaim any input VAT (in my case a lot of import duty). I don't think I need to show amount of import VAT paid on the VAT return as long as I use Flat Rate Scheme, am my understanding it all correct? I know after Jun 2022 if I use PVA then, the VAT return form will have to add import duty on to box 1. However can I not use PVA and just let Fedex pay for it and I repaid, that seem to be much simpler for a small business owner. Can I stay this way? Will it be correct to do so? Many thanks for your help. Helen
Posted Wed, 30 Mar 2022 15:51:41 GMT by HMRC Admin 10
Hi

Your undersanding is correct.

As you are on the Flat Rate Scheme then you are prevented from recovering VAT on the purchase or import of goods.

The figure would then not need to go into box 4 of the VAT return.

The PVA system is a voluntary system and so you do not need to use it.

You can import the goods from outside the UK and pay any VAT and duty via your freight agent who will then pay it on to us.

PVA is designed to aid cash flow but it isn't compulsory.

Thankyou.

Regards.
Posted Wed, 30 Mar 2022 15:56:04 GMT by Customs oldtimer
A C79 or PVA statement will only be issued where an EORI is linked to a VAT number. Only import VAT can be reclaimed, and only if you are VAT registered and have appropriate evidence (ie C79) . It is not possible to routinely reclaim any import duty paid. PVA is only available for a VAT registered business and is a choice, not something HMRC require you to use. If PVA is used then no import VAT is paid but instead stated as both input and output VAT on the same VAT return based on the amounts shown on your PVA statement. https://www.gov.uk/guidance/complete-your-vat-return-to-account-for-import-vat I cannot provide comment on how this will impact your flat rate return.

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