VAT Deferral

Following the announcement of the Chancellor, in response to the Covid-19 crisis, to allow UK businesses to defer VAT payments from March 20th 2020 (through to end March 2021) many clients have asked us if that VAT deferral option applies to import VAT. 

The answer is that it does not and currently there is no change to the import process around import taxes on goods imported from outside the EU – namely that import duty and import VAT is due at the point those imported goods are released to free circulation within the UK/EU.

HM Government restated their position on 3rd April with the following update to guidance here