UK Postponed Import VAT Reconciliation Worksheet
With postponed VAT accounting, UK import VAT is declared on the VAT return instead of being paid at the border. This worksheet lets you rebuild the figure per entry and compare it with the monthly statement before you file.
| Entry or MRN | Acceptance date | Supplier | VAT rate % | Customs value | Duty | Other dutiable charges | VAT base | Import VAT | VAT per HMRC statement | Difference | |
|---|---|---|---|---|---|---|---|---|---|---|---|
GBP 19,020 | GBP 3,804 | GBP 0 | |||||||||
GBP 45,456 | GBP 9,091 | GBP 0 | |||||||||
GBP 30,135 | GBP 6,027 | GBP 0 | |||||||||
GBP 10,100 | GBP 2,020 | GBP 20 | |||||||||
GBP 12,910 | GBP 2,582 | GBP 0 |
The VAT column uses 20% for every row as a simple default. For reduced or zero rated goods, edit the formula in your exported file or adjust the VAT per HMRC statement column and review the difference. Enter statement amounts from the monthly postponed import VAT statement. Not tax advice; confirm treatment with your adviser.
Automate the monthly import VAT check
Optional: a read-only report from your ERP of import entries and costs to compare with the HMRC statement.
Optional. The tool and every export work without this. No spam.
How to use the worksheet
Add one row per import entry for the month. Enter customs value, duty and other charges that are part of the VAT base, and the amount shown on the HMRC postponed import VAT statement. The sheet calculates the VAT base, the import VAT at 20% and the difference. Export to Excel and keep it with the return working papers. Any non-zero difference needs an explanation before filing.
The method behind it
Import VAT is generally charged on the customs value plus duty and other charges incurred up to the first place of destination in the UK, such as freight and insurance not already in the value. With postponed accounting you account for that VAT in box 1 of the VAT return and reclaim it, subject to normal rules, in box 4. For a fully taxable business these roughly offset, so cash flow improves and the border payment disappears.
Common mistakes
Typical issues are entries missing from your records because the freight forwarder used its own account, wrong values after a late freight invoice, and reduced or zero rated goods treated at 20%. Another is reclaiming import VAT without holding the right evidence. Chase forwarders for entry data each month and reconcile the statement before the quarter end rather than at filing time.
- Match every statement line to an entry in your ERP
- Check the VAT base includes duty and other charges
- Identify entries that used a forwarder's account
- Agree who owns the monthly reconciliation
Frequently Asked Questions
Where do I find the postponed import VAT statement?
Businesses using postponed VAT accounting can download a monthly statement from their HMRC online account. It lists entries and the VAT postponed, which you use for the return.
Does the sheet handle reduced or zero rated goods?
The default formula uses 20%. For other rates, edit the VAT formula in the exported Excel file, or enter the statement value and use the difference column to see what needs adjusting.
What goes into the VAT base?
Generally the customs value, any duty, and other charges up to the first UK destination such as freight and insurance not already included. Check current HMRC guidance for your specific import type.
Is import VAT always recoverable?
Not always. Recovery follows your normal input tax rules, including partial exemption and business use, and you must hold valid evidence. The box 4 line in the summary assumes full recovery.
If your ERP holds import costs and entry numbers, we can help build a reconciliation report that does this automatically. The worksheet is free and complete without it.
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