A partir de 24 Octubre 2026, UK VAT-registered businesses importing garments from India can account for the standard 20% import VAT directly on their periodic VAT Return using postponed VAT accounting. Rather than paying import VAT upfront at the border and waiting to reclaim it later, postponed accounting allows the tax to be declared and recovered on the same return, resulting in a nil net cash outlay at customs. Importers do not need prior approval from HM Revenue & Customs to use this system, but they must provide written instructions to their customs clearance agent before declarations are submitted.
How Postponed VAT Accounting Works for Garment Imports
Under standard UK customs procedures, adult clothing incurs import VAT at the standard rate of 20%, whereas children’s clothing is zero-rated. When importing apparel such as vestidos, caftanes, afueras, y bufandas, VAT is worked out on the customs value of the goods plus any customs duty and incidental expenses incurred up to the UK destination. If an importer pays import VAT upfront at the port of arrival, funds remain tied up until HM Revenue & Customs makes an import VAT certificate (C79) available and the business recovers the payment on a later return.
Postponed VAT accounting resolves this cashflow timing difference. A UK VAT-registered business importing goods into Great Britain from outside the UK, or into Northern Ireland from outside the UK and EU, can account for import VAT on its standard VAT Return. Para calificar, the imported goods must be for use in your business, and you must have the right to dispose of them as the owner. Because the import VAT is declared as output tax and reclaimed as input tax on the same VAT Return according to standard input tax recovery rules, the net payment due at the border is nil.
Step-by-Step Instructions for Using Postponed VAT Accounting
Setting up postponed accounting requires precise administrative coordination between the importer and the customs intermediary who handles border declarations.
- Provide written instructions to your customs agent: You do not need to submit an application or seek approval from HM Revenue & Customs to use postponed VAT accounting. Sin embargo, customs agents, freight forwarders, and brokers must have written confirmation from you stating that you want to use postponed VAT accounting before they can proceed with the import declaration. Keep a written record of these instructions. If an overseas supplier arranges clearance on your behalf, agree in writing on the accounting method and provide your EORI number so they can instruct the declarant.
- Ensure correct declaration completion: When submitting the import declaration via the Customs Declaration Service, the declarant must enter your UK VAT registration number at header level in Data Element 3/40. The declarant must not enter method of payment G in Data Element 4/8. The VAT is recorded against your EORI number at declaration level. Once an import declaration is submitted, you cannot amend how you account for import VAT for that consignment.
- Access monthly postponed import VAT statements online: Paper C79 certificates are not generated for shipments cleared under postponed accounting. Instead, transactions appear on your monthly postponed import VAT statement. Importers must check their financial dashboard within the Customs Declaration Service online to download these statements.
- Complete your periodic VAT Return: Use the totals from your monthly postponed import VAT statements to complete your return. You declare the postponed import VAT as output tax and claim the allowable proportion as input tax on the same VAT Return under the normal input tax rules.
Garment Duty Rates and VAT Value Calculations
Import VAT is calculated on the VAT value, which comprises the customs value for duty, any Customs Duty payable, and incidental expenses incurred up to the goods’ destination in the UK. Bajo el Reino Unido–Acuerdo Económico y Comercial Integral de la India (CETA), which was signed on 24 Julio 2025 y se aplica desde 15 Julio 2026, UK customs duty dropped to 0% across all knitted garments, prendas tejidas, and textile made-ups. To receive the 0% preferential tariff instead of the standard 8% a 12% duty, garments must originate in India under the agreement’s origin rules (a change of tariff heading plus qualifying value content) and be supported by an origin declaration on the invoice or a certificate of origin issued in India.
When the 0% preferential duty applies, VAT is calculated at 20% on the customs value plus incidental expenses. Incidental expenses include commission (excluding buying commission), transport, seguro, embalaje, customs clearance charges, handling, entry fees, quay rent, and storage incurred up to the first destination in the UK (and any known further destination). Importers can calculate incidental expenses using actual costs (Method 1), nationally agreed flat rates (Method 2), or an individual agreement with the local Excise and Inland Customs office (Method 3). Under Method 2, airfreight incidental expenses are 55p per chargeable kilo (mínimo £135), while surface freight groupage consignments carry £125 per gross weight tonne plus a flat £110 ancillary rate (mínimo £235), and surface freight full load consignments carry a flat £760 tasa.
| Garment Description | Fabric and Construction | Standard UK Duty | Reino Unido–India CETA Duty | Import VAT Rate |
|---|---|---|---|---|
| Women’s dresses | Algodón, tejida | 12% | 0% with proof of origin | 20% |
| Women’s dresses | Viscosa / seda artificial, de punto | 12% | 0% with proof of origin | 20% |
| kaftans | Seda o lino, tejida (corte de bata suelta) | 12% | 0% with proof of origin | 20% |
| Afueras | Poliéster, tejida | 12% | 0% with proof of origin | 20% |
| Bufandas y estolas | Wool or silk, tejida | 8% | 0% with proof of origin | 20% |
| Bufandas y estolas | Algodón, de punto | 12% | 0% with proof of origin | 20% |
Comprueba tu propia prenda
Fabricamos vestidos de mujer., caftanes, skirts and scarves for UK fashion brands. Habla con nosotros to plan production runs supplied with valid certificates of origin.
Fuentes
- Check when you can account for import VAT on your VAT Return
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Información indicativa de fuentes oficiales., escrito 24 Octubre 2026. Tarifas verificadas en contra los aranceles oficiales. No es una norma aduanera.; Confirme con su agente de aduanas antes de confiar en él..
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