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Simplified Import VAT Accounting can reduce the amount of the guarantee for a duty deferment account so it only covers duty, not VAT.

What you鈥檒l need

To get simplified accounting approval, your business needs to have a good system of control over its operations and flow of goods.聽

You鈥檒l need to have records of your customs controls and a good history of VAT compliance over the last 3 years.聽

You鈥檒l also need to have been registered for VAT for 3 years or more. You can still apply if you have been registered for less time, but you鈥檒l go through more financial and credibility checks.

When you will not be approved for Simplified VAT Accounting

You鈥檒l not be approved for this way of accounting if you:

• owe money to HMRC

• have been charged with a serious offence by HMRC

• have defaulted on duty deferment account payments more than once in the last 12 months

• have incurred any default surcharges in the last 12 months

• have transferred the business as a going concern in the last 3 years 鈥� unless the transfer happened because of a change in legal status, such as becoming a limited company

HMRC might need to see your accounts for the last 3 years and ask for a credit check on your business. Your simplified accounting application will be rejected if your business is in:

• administration
• liquidation
• insolvency
• bankruptcy
• receivership
• other financial difficulty

You can apply for simplified accounting when your business is no longer in financial difficulty if you meet the approval conditions.

If you鈥檙e acting on behalf of somebody else

You can apply for simplified accounting if you鈥檙e:

• a customs agent or broker

• a freight forwarder聽

• an express operator

Who needs to pay the customs debt depends on if you鈥檙e acting directly or indirectly.

You must meet any liabilities that are set against your duty deferment accounts, or your simplified accounting approval will be withdrawn.

You need to check who you鈥檙e doing business with as simplified accounting may attract fraudsters. You must make reasonable checks to establish the integrity and reliability of your customers.

You can read more about simplified accounting and the type of checks agents need to do 鈥� in section 5 of Notice SIVA1.

Apply for Simplified VAT Accounting

If your business聽has more than one duty deferment account number you must apply for simplified accounting on each account.

1. Get all of your information together before you start. You will fill this form in online and you cannot save your progress.

2. Fill in .

3. Fill in the (ODT, 43.4 KB).

4. Send both the form and questionnaire to HMRC by email to team.siva@hmrc.gov.uk.

After you鈥檝e applied

HMRC will usually send you the decision within 120 days. If HMRC cannot do this, they鈥檒l send you an acknowledgement.

You must maintain a guarantee to cover import duties, excise duties and import VAT until you鈥檙e approved.

If you do not get approval, you鈥檒l receive a letter which explains the reasons why and tells you about the review and appeals procedure.

After your application is approved

1. You鈥檒l get a letter of authorisation from HMRC when your application is accepted.聽

2. You鈥檒l need to fill in a deferment schedule with details of the amount you鈥檒l be deferring each month. If you do not send this form to HMRC within 6 months of receiving your authorisation letter, your approval will be cancelled and you鈥檒l have to apply again.

3. You can then set up an account to defer duty payments when you import goods.