UK import VAT deferral and postponed VAT accounting
UK allows two systems of import VAT deferral (standard deferral and SIVA). However, postponed import VAT accounting does not exist in the UK.
Import VAT and duty deferment is allowed for established and non-established VAT registered companies in the UK. The payment of import VAT, custom duties, excise duties and other levies is deferred until the 15th day of the following month. The payment must be made by direct debit from a UK bank account. To benefit from this scheme, taxpayers should submit an application using the form C1200 and instruct the bank to set up the direct debit. A bank guarantee is required and HMRC should be informed of such guarantee by filing the form C1201.
There is also a simplified import VAT deferral system called "Simplified Import VAT Accounting" (SIVA). This system only applies to import VAT (not to customs tariffs) and it requires a lower level of financial security than import VAT deferral. VAT registered businesses in UK can apply for SIVA through the online services of HMRC.
Postponed import VAT accounting allows import VAT to be reported in the VAT return as due and deductible, hence with a nil financial effect for the importer (unless it is a partially exempt business). This system does not exist in the UK.