My Export Advise Hub: Q & A on PVA and DDA

Oct 11, 2022

There is a lot of uncertainty around DDA and PVA when it comes to Freight Forwarders and Clearing Agents. Today we will clarify another issue we are asked most frequently.


VAT and Duty on Import have to be correctly declared, hence when you are using Freight Forwarder or Customs Clearing Agent, it is very important he receives clear instructions how to account for import VAT and duty.

in ideal world, they follow the instructions, but we know it does not always happen.

Question:

My companies import from many overseas markets, including the EU Member States, and our finance team handle import VAT under the postponed VAT accounting (PVA) scheme. We issue instructions to freight agents and clearing agents requesting them to enter the duty against our duty deferment account (DDA) and to put the VAT to PVA. However, 40% of our imports still have the agent declaring VAT to the deferment account, meaning we need two different systems for accounting for import VAT. Can we reject an incorrect import entry and get the agent to amend the VAT payment to PVA?

Answer:

Once VAT has been put to a particular method of payment (MOP) — F for deferment account — you cannot change this, so your finance department will be receiving both the C79 VAT Certificates and the monthly postponed import VAT (MPIV) statements via the Government Gateway. You must emphasise to clearing agents how important it is to use MOP G.

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