Postponed accounting for import VAT rules amended

From 1 June 2022 businesses registered under the flat rate scheme should no longer include imports accounted for under postponed VAT accounting within their flat rate turnover. The full amount of import VAT should be added to box 1 of the VAT return after the flat rate calculation has been completed.

For VAT return periods beginning before 1 June 2022 businesses should continue to include the total value of the imported goods when accounting for import VAT on their VAT return within their flat rate turnover. Businesses should then apply the appropriate flat rate percentage to the total.

HMRC will not collect any amounts that may have been due if the correct treatment had been in place for periods starting before 1 June 2022. Businesses will not be penalised in relation to those sums and do not need to amend previously declared returns.

Postponed VAT accounting...