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HMRC are taking the opportunity to remind you that if you use the Flat Rate Scheme and account for import VAT on your VAT return using postponed VAT accounting, there will be 3 changes to the way you account for import VAT for your VAT return periods starting from 1 June 2022.
Currently the value of your postponed imports is included in your businesses Flat Rate Scheme turnover calculation, and therefore subject to the flat rate percentage.
From 1 June 2022 these imports should be dealt with outside of the Flat Rate Scheme and you should exclude them from your Flat Rate turnover. You will still need to complete a Flat Rate Scheme calculation and also record the VAT due on any imports you have made. The value of import VAT should be included in box 1 on your VAT return, following the application of the Flat Rate percentage.
In February 2022 HMRC published the Revenue and Customs Brief 3 (2022): postponed VAT accounting and businesses registered under the Flat Rate Scheme. You should read the brief if:
- You're registered under the Flat Rate Scheme
- You have accounted for import VAT on your VAT return since 1 January 2021
For more information on how to account for import VAT on your VAT return visit GOV.UK
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