Overview

Postponed VAT Accounting (PVA) continues to be one of the most effective cash flow management tools for Amazon sellers who import inventory into the UK. The HMRC scheme, introduced after Brexit in 2021, lets VAT-registered businesses defer import VAT from the point of customs clearance to their quarterly VAT return — eliminating the need to pay thousands upfront at the border and wait weeks to reclaim it. For FBA sellers regularly shipping bulk inventory from overseas suppliers, understanding how PVA works in 2026 is essential for keeping working capital available.

What's Current for 2026

• No policy changes — HMRC has confirmed PVA remains fully operational with unchanged eligibility rules throughout 2026
• Automatic application — Most freight forwarders and Amazon's own import services now default to PVA for eligible VAT-registered sellers
• Six-month statement retention — HMRC only stores monthly PVA statements for six months, so timely downloads are critical
• CDS portal access required — All PVA statements are now exclusively available through the Customs Declaration Service portal

Who Qualifies

Eligibility for PVA is straightforward but non-negotiable. Sellers must hold a valid UK VAT registration number, and imported goods must be intended for business use. Your EORI and VAT registration numbers need to appear on all import declarations. Crucially, no advance application or HMRC approval is required — any VAT-registered business can select PVA when completing customs declarations. Overseas Amazon sellers registered for UK VAT face the same eligibility criteria as domestic businesses, putting everyone on equal footing.

How the Process Works

When importing under PVA, you or your customs agent selects postponed accounting on the import declaration. Goods clear customs without requiring immediate VAT payment to your courier or freight agent. HMRC then generates a monthly statement showing total VAT amounts for that period, linked to your EORI and VAT number.

On your quarterly VAT return, you declare the import VAT in Box 1 and reclaim the same amount in Box 4. For goods used entirely in taxable business activities, these entries cancel each other out — meaning zero cash leaves your business for import VAT. You also include the net value of imported goods in Box 7 as part of your total purchases figure.