VAT on imports and exports

Post-Brexit VAT landscape

Since 1 January 2021, the UK has been outside the EU VAT area. This means:

• Imports from the EU are treated the same as imports from the rest of the world.
• Exports to the EU customers can be zero-rated (with evidence).
• The reverse charge for EU services still applies.

Importing goods into the UK

Standard import VAT

Import VAT is charged at the point of customs clearance. HMRC collects it on behalf of the UK government. Your customs agent or freight forwarder will provide a C79 certificate showing the import VAT you’ve paid in the month — this is your evidence for reclaiming it.

In AccBooks: Post the import VAT shown on the C79 as a purchase, classified to your input VAT account (code 2201). This appears in Box 4 of your VAT return.

Postponed VAT Accounting (PVA)

Postponed VAT Accounting lets you defer import VAT — instead of paying it at the border, you account for it on your VAT return. This is the default for most VAT-registered UK importers since Brexit.

Under PVA:

• You import goods; no VAT is collected at the border.
• HMRC sends you a Monthly Import VAT Statement (MPIVS) showing the PVA amount.
• You add this to Box 1 (output) and Box 4 (input) of your VAT return.

In AccBooks:

1. Download your MPIVS from the HMRC customs declaration service each month.
2. Go to VAT → Postponed VAT Accounting → Import statement.
3. Upload the MPIVS file. AccBooks populates Boxes 1 and 4 automatically.

Exporting goods from the UK

Exports of physical goods from the UK are zero-rated, provided you have evidence the goods left the UK (customs export declaration, shipping documents, or proof of delivery).

In AccBooks: When raising a sales invoice for an export, select Zero rate (0%) — export as the VAT treatment. The invoice appears in Box 6 of your return but not Box 1.

Keep export evidence (bills of lading, CMR notes, etc.) attached to the invoice in AccBooks — go to the invoice and click Attach document.

Supplying services to overseas customers

The VAT treatment for services depends on where the customer belongs:

Customer type	Treatment
UK business	Standard UK rules apply
Overseas business (B2B)	Generally outside scope — customer accounts for VAT in their country
Overseas consumer (B2C)	Depends on the type of service — digital services sold to EU consumers require EU VAT registration

In AccBooks: For B2B overseas services, use the Outside scope (B2B overseas) VAT treatment. These transactions don’t appear in Boxes 1–5 but do appear in Box 6 if they’re business supplies.

Receiving services from overseas suppliers

If you receive services from an overseas business, reverse charge VAT applies. See Reverse charge VAT for details.

EU VAT registration (OSS / IOSS)

If you sell digital services or physical goods directly to consumers in EU countries, you may need to register for the EU One Stop Shop (OSS) or Import One Stop Shop (IOSS) scheme. AccBooks can track EU VAT separately to help you calculate your OSS obligations, but EU registration and filing is managed directly with the relevant EU tax authority.

Contact AccBooks support for help setting up EU VAT tracking in your account.