GlossaryEN1 min readUpdated: Jun 26, 2026

import VAT deferral

An import VAT deferral allows VAT-registered businesses to account for import VAT through their periodic VAT return rather than paying it at the point of customs clearance.

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.gov.uk/guidance/postponed-import-vat-accounting-piva

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Logistics Concept

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Definition & Explanation

An import VAT deferral allows VAT-registered businesses to account for import VAT through their periodic VAT return rather than paying it at the point of customs clearance. The tax liability arises with the import itself, but settlement is deferred – typically to the due date of the next return cycle, where it can be offset against output VAT on domestic sales. For high-volume importers, this significantly improves working capital by eliminating the lag between tax payment and its recovery. Eligibility requires active VAT registration and, in many jurisdictions, prior authorization from the tax authority. The mechanism differs from a formal VAT suspension or deferment notice, which is granted case by case rather than embedded in the standard return process.

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import VAT deferral

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Related Terms

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