Using PVA with UPS

[Daniil T]

Question:
Has anyone managed to consistently get UPS to use Postponed VAT Accounting (PVA) for shipments sent to them from overseas?
If so, how did you do this?

Background:
We regularly receive shipments sent to us in the UK from overseas via UPS. Shippers specify our VAT and EORI numbers on the electronic commercial invoice, however UPS proceeds to pay import VAT using their account and re-charges this VAT to us, instead of using PVA with our VAT number.

This negatively impacts our cash flow, as we can't simply account for this VAT on the quarterly return.

Bonus question:
UPS charges the disbursement fee on top of import VAT. Would they still charge this if PVA is used correctly and the goods have zero import duty applied to them?

Thank you!

 

[LPB 123]

Question:
Has anyone managed to consistently get UPS to use Postponed VAT Accounting (PVA) for shipments sent to them from overseas?
If so, how did you do this?

Try contacting the Customs Brokerage team as soon as you have a tracking number to advise them to import using PVA.

03457 877 877 option 6 1

They still charge us a disbursement fee but we do have duty on our items. In theory they shouldn't charge you this but they make so many errors with imports that they could.

 

[Import Expert]

Unfortunately courier companies (not just UPS) are not exactly known for accuracy when it comes down to customs declarations.

They should not change a deferment fee if their is no Duty and VAT under PVA.

 

[Customs Geek]

PVA (postponed import VAT) so only covers import VAT . If duty is payable then that needs to be accounted for in some way.
If the courier uses their deferment account for the import duty then they would charge a disbursement
As others have said getting couriers to declare goods as requested is a constant battle. Also getting though to them to make amendments even when it’s their mistake is pretty much impossible.

 

[Daniil T]

Thanks all! Looks like we'll need to make it super clear on the commercial invoices that UPS are ought to use PVA for VAT, and we'll follow this up with a call to their brokerage team to ensure that this isn't missed.

The next part of this saga will be to force UPS to use our Duty Deferment Account for duties instead of UPS using theirs and charging the disbursement fee.