Apply to use Simplified Import VAT Accounting
Source: gov.uk (2025-02-06)

Find out how to apply for Simplified Import VAT Accounting to lower the financial guarantees you give for the duty deferment scheme.

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’ll need

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

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

You’ll 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’ll go through more financial and credibility checks.

When you will not be approved for Simplified VAT Accounting

You’ll 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 — 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’re acting on behalf of somebody else

You can apply for simplified accounting if you’re:

a customs agent or broker

a freight forwarder

an express operator

Who needs to pay the customs debt depends on if you’re acting directly or indirectly (https://www.gov.uk/guidance/appoint-someone-to-deal-with-customs-on-your-behalf).

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meet any liabilities that are set against your duty deferment accounts, or your simplified accounting approval will be withdrawn.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’re 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 — in section 5 of Notice SIVA1 (https://www.gov.uk/government/publications/notice-siva-1-simplified-import-vat-accounting).

Apply for Simplified VAT Accounting

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

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

Fill in Simplified Import VAT Accounting application form (https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/Vat_iForms/1.0/SIVA&template=Siva1.xdp).

Fill in the questionnaire (https://assets.publishing.service.gov.uk/media/6540dc496de3b9000da7a6a6/SIVA1a.odt) (ODT, 43.4 KB).

Send both the form and questionnaire to HMRC by email to xxx@xxx.xx (mailto:xxx@xxx.xx).

After you’ve applied

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

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

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

After your application is approved

You’ll get a letter of authorisation from HMRC when your application is accepted.

You’ll need to fill in a deferment schedule (https://www.gov.uk/government/publications/vat-deferment-schedule-simplified-import-vat-accounting-reduced-security-siva2) with details of the amount you’ll 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’ll have to apply again.

You can then set up an account to defer duty payments when you import goods (https://www.gov.uk/guidance/setting-up-an-account-to-defer-duty-payments-when-you-import-goods).