The UK import and export landscape is changing rapidly, and businesses that fail to keep pace risk delays, penalties, and unnecessary costs. At the heart of these changes is the move to the Customs Declaration Service (CDS), which links customs declarations directly to VAT compliance.
For importers — especially overseas businesses bringing goods into the UK — the message is clear: your VAT compliance must be watertight if you want to avoid disruptions at the border.
The Shift to CDS and What It Means for VAT
The UK’s CDS has now fully replaced the old CHIEF system, making it the only platform for submitting import and export declarations. Unlike CHIEF, CDS is more data-driven and closely linked to VAT accounting. Import VAT records are now managed digitally, and importers can access their monthly postponed VAT statements online.
This means HMRC has greater visibility of your VAT position in real-time, and any gaps, errors, or delays in compliance can directly hold up your shipments at port.
Increased Scrutiny on Foreign Importers
Foreign importers without a UK establishment (NETPs) are under particular scrutiny. HMRC expects all VAT registrations, returns, and payments to be up to date before goods can be released. Incomplete compliance may result in:
Delays at ports and airports
Goods being held pending clarification
Possible financial penalties or seizure of shipments
Postponed VAT Accounting (PVA): An Opportunity and a Risk
Postponed VAT Accounting (PVA) allows businesses to defer import VAT to their VAT return, instead of paying it upfront at the border. This can significantly improve cash flow, but only if declarations and VAT returns are aligned.
If PVA entries don’t match HMRC records on CDS, it may trigger an audit or compliance review.
How Mercium Helps You Stay Compliant
At Mercium, we provide end-to-end VAT and customs compliance support to importers, exporters, and e-commerce businesses operating in the UK.
Our services include:
VAT Registration & Returns – Helping UK and foreign companies stay compliant with all HMRC obligations.
CDS Setup & Management – Ensuring your business is correctly registered, with access to CDS financial accounts and postponed VAT statements.
Postponed VAT Accounting Support – Managing your PVA entries to make sure VAT is correctly deferred and reclaimed.
Audit-Ready Documentation – Preparing and maintaining accurate records to satisfy HMRC checks.
Classification, Origin & Valuation Guidance – Reducing risk by ensuring declarations are accurate and compliant.
Consultancy & Training – Advising your team on best practices to streamline customs and VAT processes.
Why Acting Now Matters
HMRC has already increased its recovery of unpaid VAT and duties in recent years, and businesses can expect more frequent compliance checks moving forward. With CDS now fully live, errors that may once have gone unnoticed are immediately visible.
Getting VAT compliance wrong is no longer just an accounting issue — it’s a supply chain issue. Goods can and will be delayed if your VAT obligations are not in order.
Partner with Mercium
At Mercium, we combine over 10 years of customs and customs VAT expertise with a practical understanding of the freight forwarding industry. Whether you are a UK business or a foreign importer, we can help you stay compliant, avoid costly delays, and take advantage of VAT schemes such as PVA without risk.
Contact us today to discuss how our VAT consultancy services can keep your goods moving and your compliance secure.
