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:

• Raal.io pays the Import VAT on your behalf at the border

• You receive official proof from our customs agent (C88 customs entry)

• You reclaim the Import VAT on your next VAT return (Box 4)

• HMRC also issues a C79 certificate confirming import VAT paid

Benefits of Standard VAT Payment:

✅ Familiar for most UK accountants

✅ You get both C88 and C79 documents as proof

✅ Lower risk of misreporting VAT

Requirements for Standard VAT Accounting:

• UK VAT registration required

• You’ll need to provide company and VAT details, including:

  • Company name & registration number

  • GB EORI number

  • UK VAT number

  • Registered company address

  • Contact details for finance/accounting

Why Choose Standard VAT Accounting?

• Your accountant is comfortable with standard VAT reclaim processes

• Imports are infrequent, so cash flow isn’t a concern

• You want to avoid potential PVA reporting errors

Which VAT Option Is Best for You?

Final Thoughts about the import to the UK

Handling Import VAT correctly is crucial for avoiding compliance headaches and keeping your company’s cash flow healthy.

• If you want faster cash flow and manage frequent imports, Postponed VAT Accounting (PVA) is the smarter choice.

• If you prefer simplicity and familiar documentation, stick with the Standard VAT method.

At Raal.io, we help global companies ship and retrieve IT equipment smoothly across borders. Our logistics and customs expertise means you can focus on running your business while we take care of the details.

👉 Ready to streamline your imports? Get in touch with us at Raal.io and let’s make VAT handling easy for your team.