It is now possible to improve the import of goods to the UK even more than before. It is an improvement which will support smooth customs clearance of goods and improve administration and finances in relation to the handling of imports to the UK.
PVA
You must ensure that your British freight forwarder / customs agent declears your goods through customs using PVA (postponed VAT Accounting). Write it directly to your forwarder and apply the information on your commercial invoice: Import with PVA.
With the PVA scheme, British import VAT will be registered as a statistical value and you will get an improved cash flow and no administration for bookkeeping, reconciliation and payment of invoices regarding import VAT
Cash Account
Since it is very demanding for foreign companies to set up a British duty deferment account, there is now a very good alternative. It has become possible to set up a Cash Account with HMRC.
With a Cash Account, you must transfer money to a debit account in your name with HMRC. After this, British freight forwarders, to whom you have given power of attorney, can deduct the payable British duties in relation to the importation of goods to the UK.
With this solution, you will achieve savings both in the administration of invoices regarding payment of British customs duties and on fees to the British freight forwarder / customs agent, as there are no longer any outlays.
TIMEVAT recommends everyone to make use of PVA combined with a Cash Account.
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