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News

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What Is Postponed VAT Accounting?

Postponed VAT accounting is a mechanism that allows import VAT to be declared and recovered through a business’s VAT return, rather than being paid at the time goods are imported into the UK. This means that instead of paying import VAT upfront and later reclaiming it, the VAT is both declared as output tax and, subject to the usual rules, recovered as input tax on the same return.

HMRC Tribunal

The VAT People discuss HMRC’s successful appeal to the Upper Tribunal (Tax) against Sonder Europe Ltd. after the decision that their supply did not fall under TOMS.