Tax & Compliance
Postponed VAT Accounting Explained: How to Import £45,000 of Stock From the EU Without a Cash-Flow Hit at the Border
Importing stock from the EU can trigger an unexpected VAT bill at the border — but Postponed VAT Accounting (PVA) lets UK businesses declare and reclaim import VAT on the same return, removing the cash-flow hit entirely. This guide walks through a worked £45,000 example, the journal entries, and exactly how to report it correctly on your VAT return.