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Import glossary

Postponed VAT accounting (PVA)

Quick answer

PVA lets a UK VAT-registered importer account for import VAT on their VAT return instead of paying it in cash at the border.

Last reviewed 16 July 2026.

Postponed VAT accounting (PVA) is a UK scheme that changes the timing of import VAT. Instead of paying import VAT to customs when goods arrive and reclaiming it later, a VAT-registered business declares the import VAT as both due and reclaimable on the same VAT return. For a fully taxable business, the two entries cancel out and no cash changes hands.

PVA is available to any UK VAT-registered importer and is elected on the customs declaration. You then reconcile it using the monthly postponed import VAT statement (rather than the older C79 certificate) that HMRC makes available online.

The benefit is cash flow. Without PVA, import VAT is paid at the border and tied up until the next VAT return; with PVA, that money is never paid out in the first place, which can be significant on large or frequent shipments.

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How it affects your landed cost

PVA is the reason import VAT usually should not sit in your landed cost as a permanent expense — for a VAT-registered importer using PVA, the VAT is a wash rather than a cost. Understanding this stops you from overstating your cost per unit. Our calculator separates import VAT from the non-recoverable costs so you can see the true, duty-and-freight-driven landed cost underneath.

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Postponed VAT accounting (PVA) — FAQ

Who can use postponed VAT accounting?
Any UK VAT-registered business importing goods can use PVA. It is chosen on the import declaration and reconciled through the monthly postponed import VAT statement from HMRC.

Related terms

See also

Postponed VAT accounting (PVA)

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