If your business is registered for VAT in the UK you can account for import VAT on your VAT Return (also called postponed VAT accounting).

Accounting for import VAT on your VAT Return means you’ll declare and recover import VAT on the same VAT Return, rather than having to pay it upfront and recover it later.
From 1 January 2021, if your business is registered for VAT in the UK, you’ll be able to account for import VAT on your VAT Return for goods you import into:

• Great Britain (England, Scotland and Wales) from anywhere outside the UK
• Northern Ireland from outside the UK and EU

There will be no changes to the treatment of VAT or how you account for it for the movement of goods between Northern Ireland and the EU.You do not need any approval to account for import VAT on your VAT Return.If you’re a non-established taxable person you’ll need to get someone to deal with customs for you, including completing your customs declaration.
If you want to account for import VAT on your VAT Return, you must tell the person dealing with customs for you to select this on your customs declaration and enter your details as the consignee.
You can do this if:

•  the goods you import are for use in your business
• you include your VAT registration number on your customs declaration

When you complete your customs declaration you can select that you’ll be accounting for import VAT on your VAT Return.
If you use the Customs Handling of Import and Export Freight (CHIEF) system
On your declaration, you’ll need to enter:

• your EORI number starting with ‘GB’ which includes your VAT registration number into box 8 (Header Consignee), or, if applicable, your VAT registration number in box 44h (Registered Consignee)
• ‘G’ as the method of payment in Box 47e

If you use the Customs Declaration Service
You need to enter your VAT registration number at header level in data element 3/40.
VAT will be recorded against your EORI and will be at declaration level only.

 

Source: Gov.UK website