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Written question asked by Ben Lake (Plaid Cymru) on Wednesday, 10 June 2026, in the House of Commons. It was due for an answer on Monday, 15 June 2026. It was answered by Dan Tomlinson (Labour) on Wednesday, 17 June 2026 on behalf of the Treasury.

Imports: VAT

Question

To ask the Chancellor of the Exchequer, pursuant to the Answer of 20 May 2025 to Question 51908, whether she has made an estimate of (a) the cash-flow to the Exchequer of withdrawing postponed VAT accounting for imports, including the interest foregone on deferred VAT liabilities, and (b) the potential reduction in import VAT fraud and the tax gap from requiring payment of import VAT using the same facilities as apply to customs duties.

Answer

Postponed VAT accounting provides significant support for businesses, helping to manage cash flow and facilitate imports. HMRC undertakes regular operational work to ensure compliance with the rules around postponed VAT accounting.

The VAT gap has reduced from 13.8% in 2005-06 to 6.5% in 2024-25, and has remained broadly stable since 2020-21.

The Government keeps all tax policy under review as part of the policy making process

Secondary information

Type
Written question
Reference
8654
Session
2026-27
Related items
Imports: VAT
Tuesday, 20 May 2025
Written questions
House of Commons
Grouped for answer
Yes
Subjects
Finance Import duties Imports VAT
Contains statistics
Yes
Link
View this Written question on www.parliament.uk