HMRC has announced that the CDS defect that affected postponed VAT accounting has been now resolved. This means that the PVA01 workaround is no longer required.

CDS was in most cases collecting the VAT instead of postponing it where the declarant was calculating charges manually in conjunction with using PVA. The VAT collection issue has now been fixed.

Please click on the link below to access the CDS Completion guidance, which provides instructions on how to compliantly declare Postponed VAT Accounting (PVA) in conjunction with a manual duty calculation:

https://www.gov.uk/government/publications/cds-uk-trade-tariff-volume-3-import-declaration-completion-guide/group-2-references-of-messages-document-certificates-and-authorisations#data-element-2-2:~:text=Use%20of%20Postponed%20VAT%20Accounting%20(PVA)%20in%20conjunction%20with%20a%20manual%20duty%20calculation%20(AI%20Code%20OVR01%20and%20PVA01)%3A

If you have any questions, please contact Igor Popovics from BIFA’s policy and compliance team.

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