PVA saves on short term cash flow requirements for importers
Normally, import VAT on goods coming into a country is paid over at customs with any duties or tariffs. The VAT may then be recovered via the importer’s next VAT return against the eventual sales VAT charged on the goods. This can take a few months in cash flow deficit. Instead, many countries now offer postponed VAT accounting (PVA) to avoid the need to ever pay the import VAT.
Watch a short video how VATCalc’s application calculates and reports in a VAT return postponed VAT.
Postponed VAT Accounting means no import VAT payment
Where a country offers PVA to B2B importers, they never have to pay import VAT due on the value of the goods passing through customs. Instead, they VAT register (which is probably needed anyway to report the goods), and just report the transaction in their VAT return for customs to see. No import cash paid.
Which countries offers PVA regimes?
Over half of the EU countries and the UK offer PVA regimes:
🇬🇧 United Kingdom (Post-Brexit)
After Brexit, the UK introduced optional PVA for VAT-registered businesses importing goods into the UK:
- The import VAT is declared and reclaimed on the same VAT return.
- This is especially helpful now that the UK is no longer part of the EU VAT area so as to avoid VAT payments on goods brought in from the EU.
🇫🇷 France
France introduced PVA (Autoliquidation de la TVA à l’import) as mandatory from January 1, 2022 for all businesses importing goods:
- Businesses need a French VAT number.
- The French customs declaration is linked with the VAT return system.
- Import VAT is reported under line 20 (autoliquidation de TVA à l’import) on the VAT return.
🇧🇪 Belgium
Belgium allows postponed accounting through a “ET 14000 license”, and along with Netherlands this has proved popular in promoting the country as a destination for European shipping imports.
- Businesses must apply for this license.
- Once granted, import VAT is accounted for on the VAT return.
- It’s especially attractive for EU-based distribution hubs.
🇳🇱 Netherlands
The Netherlands offers Article 23 license:
- VAT is not paid at customs.
- It is accounted for in the periodic VAT return.
- This is a big reason why many companies use the Netherlands as an import gateway into the EU.
🇩🇪 Germany
Germany does not have a full PVA system like the Netherlands or France:
- Import VAT must typically be paid upfront at customs.
- However, some simplified procedures may be available through fiscal representation or bonded warehouses.
