AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
If your business is VAT-registered and the goods are for business use, you can use postponed VAT accounting (PVA): instead of paying import VAT at the border, you declare it and reclaim it on the same VAT return, so for most businesses the cash cost is nil. You need no approval, but your VAT registration number must be on the import declaration, and you cannot switch method once the declaration is submitted.
Import VAT can be the largest single cost at the border, larger than duty, especially when Nigerian goods enter at 0% duty under the Developing Countries Trading Scheme. Paying it upfront and waiting months to reclaim it ties up cash a small importer needs for the next order. Postponed VAT accounting removes that wait.
Who can use it
GOV.UK's guidance (updated 16 June 2025) sets three conditions:
- Your business is VAT-registered in the UK.
- The goods are for use in your business.
- You have the right to dispose of them, usually as owner.
GOV.UK says you do not need any approval. If you are not VAT-registered, PVA is not available and import VAT is paid at import; it then becomes a cost you cannot reclaim. See the VAT threshold for a new UK business.
On the import declaration
Most importers from Nigeria use a customs agent, so the agent makes the entries. GOV.UK says:
- Your VAT registration number goes at header level in data element 3/40.
- Do not use method of payment G in data element 4/8.
- VAT is recorded against your EORI number, at declaration level only.
- You cannot change how you account for import VAT once the declaration is submitted.
If an agent imports for you, GOV.UK says you must give them written instructions to use PVA before they make the declaration. Do it once, in writing, at the start of the relationship, and repeat it on each shipment instruction. GOV.UK also notes exclusions: Royal Mail consignments over £135 and simplified declarations for commercial goods in baggage cannot use PVA.
On the VAT return
Each month you can download a postponed import VAT statement from the Customs Declaration Service, showing the import VAT postponed for the previous month. GOV.UK's return guidance (updated 10 March 2023) says:
| Box | What to include |
|---|---|
| Box 1 | VAT due in the period on imports accounted for through PVA |
| Box 4 | VAT reclaimed in the period on imports accounted for through PVA |
| Box 7 | Total value of all imports of goods in the period, excluding VAT |
Box 1 and Box 4 normally carry the same figure, so the net effect is nil for a business that can reclaim all its input VAT. Use the statement figure; if you delayed the declaration and have no statement yet, GOV.UK says you can estimate.
Worked example (illustrative)
Example only. In March a Leeds shop imports Nigerian craft goods valued at £8,000 for VAT, standard-rated at 20%, so import VAT is £1,600. Without PVA, £1,600 is paid at the border and reclaimed on the quarter's return, possibly three months later. With PVA, the shop puts £1,600 in Box 1, £1,600 in Box 4 and £8,000 in Box 7. Net VAT on the import: £0, and no cash leaves the business at the border. The VAT rate depends on the commodity code, and the tariff shows it.
PVA and customs duty are separate
PVA only changes how import VAT is accounted for. Customs duty, where any is due, is still paid or deferred under the normal customs rules, and border control post fees for food checks are charged separately again. A Nigerian product at 0% duty under the Developing Countries Trading Scheme can still carry import VAT, which is why PVA matters even when no duty is due.
It also helps to think about who the importer is. GOV.UK's conditions mean the VAT-registered business using PVA should be the one with the right to dispose of the goods. If a family member in Nigeria ships goods to you to sell on their behalf, take advice on who owns the goods at import before you put your VAT number on the declaration.
If you are not yet VAT registered
Import VAT paid at the border by a business that is not VAT registered cannot be reclaimed, so it is a real cost to build into your prices. When you register, you can start using PVA on imports from that date; earlier imports stay as they were.
Common mistakes
- The agent pays the VAT through their own account because no written PVA instruction was given.
- The VAT number on the declaration is missing or wrong, so the VAT does not appear on your statement.
- Box 7 left out: import values belong there even when net VAT is nil.
- Not checking the month's statement: GOV.UK says to check your import VAT certificate (C79) and statements on the Customs Declaration Service.
Steps
- Confirm your EORI and VAT number match your business; see the EORI guide.
- Instruct your customs agent in writing to use PVA.
- Each month, download the postponed import VAT statement.
- Complete Boxes 1, 4 and 7 from it.
- Keep the statements with your invoices and customs entries.
For the duty side of the same import, see how to check UK import duty.
Where Pryme fits
PVA keeps cash in the business; the supplier still has to be paid. With a Pryme Business Account and the Finance agent, supplier payments and their records are prepared for your approval and kept with the month's import paperwork.
Questions people ask
Do I have to apply to use postponed VAT accounting?
No. GOV.UK says you do not need any approval; you need to be VAT-registered and put your VAT number on the import declaration.
Where do I get my postponed import VAT statement?
Online through the Customs Declaration Service; businesses can find statements on their financial dashboard.
Which VAT return boxes are used for postponed import VAT?
Box 1 for the VAT due, Box 4 for the VAT reclaimed, and Box 7 for the value of imports excluding VAT.
Can I use PVA if I am not VAT registered?
No. PVA is only for VAT-registered businesses importing goods for business use.
Sources
- GOV.UK: Check when you can account for import VAT on your VAT Return (updated 16 Jun 2025) · accessed Oct 2026
- GOV.UK: Complete your VAT Return to account for import VAT (updated 10 Mar 2023) · accessed Oct 2026
- GOV.UK: Import goods into the UK, step by step (updated 21 Oct 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.