HMRC has updated its guidance on accounting for import VAT on the VAT return to add a new section ‘how to adjust errors for import VAT’. Where businesses have accounted for import VAT on their VAT return and later find out the amount has changed or is incorrect, they must either:
The guidance also notes that businesses should continue to use existing methods for any over or underpayments of customs duties and must not include import VAT in any of these adjustments to HMRC if they have used postponed VAT accounting for their customs declarations.
HMRC has updated its guidance on accounting for import VAT on the VAT return to add a new section ‘how to adjust errors for import VAT’. Where businesses have accounted for import VAT on their VAT return and later find out the amount has changed or is incorrect, they must either:
The guidance also notes that businesses should continue to use existing methods for any over or underpayments of customs duties and must not include import VAT in any of these adjustments to HMRC if they have used postponed VAT accounting for their customs declarations.