I have a client who is planning to import goods to sell within the UK. He is registered for VAT and on the flat rate scheme. We are aware that input tax cannot be reclaimed on the flat rate scheme. However, my client is looking to make use of postponed VAT accounting and we need to understand how the VAT should be accounted for within the VAT return. Please can you confirm what the correct treatment is?

The postponed VAT accounting system for imported goods was introduced on 1 January 2021 and allows VAT registered businesses to declare and, subject to the normal rules, reclaim import VAT on the same VAT return.