More on VAT an Duty on imports

I explained PVA (Postponed VAT Accounting) - it is moderately simple, we need (a) a courier that is not brain dead (so don't use UPS), and (b) EORI or VAT stated on parcel - which a lot of senders allow for anyway but could just be squeezed in to address.

Courier declares the import to HMRC. HMRC do a monthly statement to allow for on VAT return. VAT all cancels out.

But duty is different!

We get duty much more rarely - some product types from some countries, and very much non obvious it will apply when you order. It depends on where supplier ships from, or possibly origin of goods (not sure which), and how they declare the goods.

It is usually small, meaning it can easily be way less than courier admin fee even! Very annoying.

Duty Deferment Account

The answer is a duty deferment account. Unlike VAT which cancels out on the VAT return, DDA is a separate account with HMRC where they charge you the duty due. There seems to be a pre-pay option but not clear how that works, and a direct debit option, and a need to guarantee the duty due. So a tad more messy. We have done all that.

But surely that is it - link to your EORI/VAT number on the parcel and have duty paid by monthly DD without any annoying courier admin fees.

No, not actually!

No, it is not so simple (WTF not?).

I have a DDA account number which has to be quoted, which is not the VAT or EORI number.

I have to complete a form and send to HMRC telling them the exact details of the import agent(s), i.e. couriers, I wish to use and authorising them to use the DDA account number.

I also have to tell the agent (e.g. DHL) to use the account and confirm they have the authority (copy of the form).

Why make is so bloody difficult! Arrrg!

Oh, icing on the cake, the form does not appear to actually be on gov.uk web sites anywhere!

I'll see how this all goes... Now to argue over a £5 admin fee with DHL.