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Ireland clarifies Postponed VAT Accounting on imports

Following the introduction of Postponed VAT Accounting – a deferment scheme for import VAT – the Irish Ministry of Finance has provided further restrictions .

PVA allows Irish VAT registered entities to avoid paying import VAT on goods coming into the country. It was implemented on 1 January 2021 to coincide with the end of the UK’s Brexit transition period. This resulted in UK shipments to Ireland being treated as VAT liable imports instead of zero-rated intra-community suppliers. To avoid the cash flow delays on VAT recovery, Ireland introduced PVA to avoid and payments. The UK also introduced its own version of PVA at the same time.

The conditions include:

  1.  the accountable person is in compliance with the VAT and customs Acts;
  2. the accountable person keeps full and true records in accordance with the Acts
  3. the accountable person has not been convicted of an offence under the Acts;
  4. the accountable person has provided information or documentation specified in paragraph (3)

EU Postponed VAT Accounting

wdt_ID Country VAT & Customs deferrment account Postponed VAT Accounting
1 Austria Yes Yes
2 Belgium Yes
3 Bulgaria Yes Yes
4 Croatia Yes Yes
5 Cyprus Yes
6 Czech Republic Yes Yes
7 Denmark Yes Yes
8 Estonia Yes Yes
9 Finland Yes
10 France Yes Yes

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