The good news is that if your company is VAT-registered in the UK, you can usually reclaim Import VAT through your regular VAT return. But the way you manage this process can have a big impact on your company's cash flow, reporting accuracy, and accounting workload.
In this guide, we'll break down the two main options available to Raal.io customers when importing devices into the UK and help you decide which one makes the most sense for your business.
Option 1: Postponed VAT Accounting (PVA)
Postponed VAT Accounting (PVA) is designed to make imports easier on your company's cash flow. Instead of paying Import VAT upfront, you record the VAT directly in your VAT return.
How PVA works:
- No Import VAT is paid when goods arrive in the UK.
- Your accountant declares the VAT on your next VAT return:
- Box 1 = VAT due
- Box 4 = the same amount reclaimed
- The effect is cash-flow neutral - you owe and reclaim the same VAT amount in the same return.
Benefits of PVA:
- No need to pay VAT upfront and wait for a refund
- Smooth cash flow for frequent or high-value shipments
- VAT appears directly in your HMRC online VAT statement
Requirements for Postponed VAT Accounting:
- UK VAT registration is mandatory
- Your accountant must opt into PVA via the HMRC portal
- Your VAT number and EORI must match the registered company address
- Raal.io's customs agent will set up a Customer Master File (CMF) for you
Tip for finance teams: With PVA, HMRC won't issue a C79 certificate. Instead, you'll find all VAT details in your online VAT statement.
Common issues with PVA:
- If your accountant isn't familiar with PVA, mistakes like double reporting can happen
- Some businesses with low import volumes stick to the standard method for simplicity
Option 2: Standard VAT Payment (Opting Out of PVA)
The second option is the traditional method: paying Import VAT when the goods arrive and reclaiming it later.
How Standard VAT Accounting works:
- Import VAT is charged when the goods clear UK customs
- You receive a C79 certificate from HMRC (usually within 4–6 weeks)
- Your accountant uses the C79 to reclaim the VAT on the next VAT return
Benefits of Standard VAT:
- Simpler to understand and manage for businesses with low import volumes
- Clear documentation via C79 certificates
- Straightforward for accountants unfamiliar with PVA
Downsides:
- Cash flow impact - you pay VAT upfront and wait weeks for reclaim
- C79 certificates can be delayed or lost
- Higher admin burden for high-volume importers
PVA vs Standard VAT: Quick Comparison
| Feature | PVA | Standard VAT |
|---|---|---|
| VAT paid upfront | No | Yes |
| Cash flow impact | Neutral | Negative (temporary) |
| Reclaim method | VAT return (Box 1 + Box 4) | C79 certificate |
| Best for | Frequent/high-value imports | Low-volume imports |
| Admin complexity | Medium (accountant must opt in) | Low (but C79 delays possible) |
What Raal.io Recommends
For most of our UK customers importing IT devices regularly, PVA is the better choice. It removes the cash flow burden and simplifies VAT reporting - especially for companies that ship devices monthly.
However, if your company imports devices only occasionally and your accountant prefers a traditional approach, standard VAT with C79 reclaim works fine.
How Raal.io Handles This for You
When you ship devices to the UK with Raal.io, our customs partner handles the import declarations. During onboarding, we'll ask whether your company uses PVA or standard VAT so we can configure the customs process correctly.
If you're not sure which method your company uses, check with your accountant or finance team before placing your first UK import order.
Need Help?
If you have questions about Import VAT, PVA setup, or customs requirements for UK device shipments, contact us - we're happy to help.
