The UK chooses PVA customs clearance to be deferred. Some logistics companies need customers to provide the letter of guarantee for Tax agents, some logistics companies need tax agents to act as tax representatives, and some logistics companies need customers to provide assessment of past VAT Return records for their own risk consideration. And no longer accept low customs clearance value declaration. However, some logistics companies require simple information, which only requires the seller to provide a written authorization agreement with the logistics company.
The UK chooses PVA customs clearance deferred. What kind of written authorization agreement does the seller need to provide with the logistics company? Combined with the original text of HMRC, as long as the seller uses express delivery or logistics customs clearance agent, and provides a written authorization agreement with the logistics company of "using PVA customs clearance deferred", it can choose PVA customs clearance deferred service, but using EMS or postal customs clearance, there is no such PVA customs clearance deferred service.
Here, the tax bureau does not actually say that the seller is giving the logistics company this written authorization to agree on who is responsible for the non-compliance of the declaration and the seller's tax evasion. However, based on the logic of tax inspection by the tax bureau, the tax bureau generally contacts the seller through the sales platform, and the seller can reply to the inquiry of the tax bureau or entrust a third party to reply and deal with it.
Risk and control of PVA Customs clearance mode
British PVA customs clearance deferred, due to the logistics company and the customs clearance bank's own risk control, in fact, the official tax bureau does not require the seller to use this PVA customs clearance mode requires any third-party guarantee, only one condition needs to be satisfied is that the seller imports for its own commercial trade use. That is, you cannot use your own VAT to deferral PVA clearance for others.
Because the tax agent and logistics customs clearance company are not quite clear whether the VAT deferred clearance is used by the seller for its own business trade, and the tax agent cannot ensure that the seller can cooperate to provide all the real data to comply with the VAT Return declaration. It is unreasonable for logistics companies to require tax agents to act as tax representatives or issue a letter of guarantee for sellers to declare tax in compliance.
In addition, we have learned from some logistics companies that can defer customs clearance with PVA and ask sellers to provide reasonable authorization letters: They only accept PVA customs clearance deferral for sellers whose destination address is amazon's FBA warehouse address, because amazon, as a sales platform, has its own FBA warehouse, which can ensure that sellers import for "their own commercial trade use", and amazon has also implemented the duty of withholding and paying sales VAT for back-end sales. Thus, the seller's written authorization letter agreement with the logistics company states that the import VAT will be declared as input and output on the VAT return.
Some templates of PVA deferred authorization letter provided by logistics companies are as follows, which we think are more reasonable for the seller's reference:
Deferment requires compliance filing
After using PVA customs clearance deferred, the seller also needs to contact the tax agent for assistance and guidance in registering a CDS account. The seller can download the electronic statement of imported VAT deferred last month in the CDS account around the middle of every month. Generally, this statement will only be retained in the system for six months, and the seller must log in and download it in time. Each quarter the seller shall send the quarterly deferred import VAT statement together with the sales report to the tax agent for declaration.
PVA electronic statement
The following is the deferred import VAT statement format that we downloaded in February using PVA deferred customs clearance in January:
British PVA deferred customs clearance, we learned from the logistics company that it is the same as the logistics cost of independent VAT customs clearance regular customs clearance, there will be no additional charges. PVA deferred customs clearance mode is more conducive to the seller's capital flow control, because the independent VAT is often cleared, the subsequent tax refund time is relatively long, and it is easy to trigger the investigation and inquiry of the tax bureau, so the case will be more complicated.