PVA

Postponed VAT Accounting (or PVA) outlines the process by which a company can delay the payment VAT to assist with cashflow. The reason a company might use PVA is that historically they might be paying out VAT on imported goods and then simply claiming it back on their VAT returns. PVA essentially allows customers to avoid paying out the money at the time of the import and just account for it on their VAT returns as deferred VAT.

Companies do not need to register/apply to use PVA. Any UK VAT registered business can use postponed accounting if they meet the conditions and instructions are given to the clearance broker that this is the method of payment of VAT:

• The goods must be for use in their business
• They include their EORI number, which starts with 'GB' on their customs declaration
• They include their VAT registration number on their customs declaration. where needed. 

You can read more about this using the below links:

Check when you can account for import VAT on your VAT Return from 1 January 2021

Complete your VAT Return to account for import VAT from 1 January 2021