An important PIVA update (Part 2)

If you read the recent IES update on PIVA you will know that Postponed Import VAT Accounting is an issue for many of us in the import and export business.
Here is the second instalment of answers to the questions that have cropped up regularly in discussions with clients.

PIVA & users of the Flat Rate Scheme for small businesses: HMRC update 17.02.22

We advise you check if you’re using the Flat Rate Scheme for small businesses and are accounting for import VAT on your VAT Return.

Note that for VAT return periods starting before 1 June 2022, you must add the value of the imported goods to the total of all your supplies, before you do the scheme calculation.
For VAT return periods starting on or after 1 June 2022, you should not include import VAT accounted for using PIVA in your flat rate turnover. The VAT due on any imports should be added to box 1 of the return after you have completed your Flat Rate Scheme calculation. Find more information about working out the VAT due on sales in VAT Notice 700/12, section 4.1.

PIVA & Zero rated products

The PIVA statements only show the VAT used for box 1 (VAT due in this period on imports) and Box 4 (VAT reclaimed in this period on imports), so the importer needs to find and enter the ‘total value of all imports of goods in this period‘ for Box 7 of the VAT return. I have noticed that some importers have been basing the import value for VAT on the statement, therefore when they are importing a mix of zero rated and standard rated items they are understating the value of imports in box 7 for the period.

We advise that you need to take the value of imports in box 7 from the import declarations either using the C88 or the MSS data. Also, check that the agent has correctly zero rated supplies.

Accessing PIVA Statements older than 6 months

When you login to the online portal to get statements using the link you will only be able to see statements for the last 6 months.
You need to request statements that are more than 6 months old. You can do this by selecting ‘Requesting an older statement’ when you are logged in on your financials dashboard.

Allowing others to access PIVA statements

There is a useful step by step guide on how to grant user access to the financial dashboard

 If your business is affected by any of these issues, I can help, please email me