Import & export accountants — connect the transaction to the tax record.
Cross-border trading involves more than overseas invoices. Import VAT, customs entries, freight, stock, currency movements and proof of export must be reconciled into a coherent UK financial record. Britvex brings trade documentation, bookkeeping, VAT and annual accounts together for companies buying or selling goods internationally.
Cross-border accounting evidence chain
Every international trade entry should be traceable to documents and the accounts.
Import and export accounting starts with the commercial arrangement.
The same shipment may involve a trader, manufacturer, distributor, marketplace, freight forwarder and customs agent. Responsibility and accounting follow the actual parties and transactions.
Purchases, duty and import VAT
Match supplier invoices to goods received, customs declarations, freight and warehousing. Identify the importer of record and reconcile import VAT evidence to the correct company.
Evidence and sales treatment
Connect export invoices, transport documents and confirmation that goods left the relevant territory. Zero rating depends on the conditions, not on the customer simply having a foreign address.
Stock across borders
Measure landed cost, goods in transit, returns, foreign supplier credit and currency exposure. Report margin based on actual inventory and freight inputs.
Marketplaces and fulfilment
Distinguish sales channels, stock locations, low-value consignments and VAT registrations. Cross-border e-commerce can create obligations separate from ordinary UK trade VAT.
Import duties, import VAT and the stock cost are different figures.
A shipment can generate a foreign supplier invoice, customs entry, freight invoice, duty payment and VAT evidence. The UK accounts need a clear record of each rather than a single “import expense” posting.
Postponed VAT accounting and MPIVS
Where the UK VAT-registered business meets the conditions and the declaration uses postponed VAT accounting, the import VAT is accounted for in the appropriate VAT return period. Obtain monthly postponed import VAT statements (MPIVS), check the declared import VAT and reconcile the relevant return boxes. Normal input-tax recovery conditions still apply.
C79 certificates and import declarations
Where import VAT was paid rather than postponed, the C79 certificate may be important evidence for VAT recovery. Check the company VAT number and EORI references and retain customs entry details. An entry submitted under a freight agent’s or another group company’s identifier cannot simply be assumed to belong to the trading company.
Customs duties and commodity classification
Commodity codes, customs valuation, origin and any available relief determine how duties may be assessed. These border-compliance matters should be handled with a competent customs representative where required. In the accounts, unrecoverable duties and directly attributable import costs can form part of inventory cost under the applicable accounting framework.
Incoterms, freight and the importer of record
International commercial terms can indicate which party organises transport, insurance or clearance, but an Incoterm alone does not settle legal ownership, UK VAT recovery or all customs obligations. Review contracts, shipping records and actual payment flows before assigning amounts to inventory, expenses or balances due.
Overseas sales require proof, not just an overseas address.
A cross-border sale involves place-of-supply rules, goods movement, export documentation, customs processes and potentially non-UK tax obligations. These cannot be collapsed into one universal VAT code.
Goods exported from Great Britain to outside the UK may be zero-rated if HMRC Notice 703 conditions are met. Official or commercial evidence must demonstrate the actual export, with correct goods, values, route and destination. Ordinary direct and indirect exports commonly have three-month time limits for shipment and evidence, subject to specific exceptions.
Goods movements involving Northern Ireland can have different VAT, EORI and customs treatment from movements involving Great Britain. Do not assume the rules for a GB-to-EU shipment automatically apply to NI-to-EU business transactions.
The identity and authorisation of the party named on a customs declaration matter. A freight agent can file entries, but that does not make the trader’s responsibility for financial records disappear; review representation arrangements carefully.
Record monetary assets and liabilities in line with the applicable accounting framework and exchange rates. A customer invoice in euros or dollars can generate a separate exchange difference when paid. Payment-processor and bank fees need separate reconciliation.
The business may have goods in transit, inventory, prepayments, credit notes or stock write-downs. UK Corporation Tax computations derive from reliable accounts and then require tax adjustments; customs duty is not the same as Corporation Tax.
Selling goods into another country may raise local VAT, sales-tax, customs or establishment questions. Britvex can review UK accounting and tax records under an agreed scope and coordinate referrals where specialist local or customs legal advice is needed.
Document → Reconcile → Classify → File.
We start with the commercial flow, identify what the business has actually imported or exported, and reconcile the movement to VAT, inventory and finance.
Understand the trade flow.
Identify suppliers, customers, shipment routes, Incoterms and legal entities.
Collect transaction evidence.
Pair sales and purchase invoices with customs entries and freight documents.
Explain VAT and payments.
Compare MPIVS or C79 entries, bank receipts and customs amounts.
Review inventory and currency.
Check landed cost, goods in transit, credit notes and exchange differences.
Prepare taxes and accounts.
Connect the trade ledger to VAT returns, annual accounts and Corporation Tax.
Maintain evidence and deadlines.
Track missing export proof, unreconciled imports and upcoming reporting work.
Gross sales do not explain what a landed product really costs.
A profitable international product line can look unprofitable—or deceptively profitable—when duty, transport, warehousing, FX differences and unsettled supplier credits are missing from the underlying records.
True landed cost and stock valuation
The invoice price may be only one component of the purchase cost. Inbound freight, irrecoverable duty and other directly attributable costs may form part of inventory under the applicable accounting framework. Import VAT that is recoverable normally needs separate treatment, not addition to stock cost. An agreed costing methodology enables meaningful product margins.
Goods in transit and cut-off
At period end, some goods may be on a vessel, in customs, held in a bonded facility or awaiting delivery. Determine control and accounting cut-off from contractual facts and standards. Avoid recording the same cargo once as a supplier invoice and again as stock received.
Multicurrency debtors and creditors
A foreign currency balance can change in sterling value before settlement. Separate operating margins from retranslation and actual bank conversion fees. Reconcile supplier statements, exchange differences and remittances so cash forecasts reflect the amounts due and the expected currencies.
Cash timing for international trading
Import duty, freight, supplier deposits and tax can become payable well before customers pay for stock. A rolling cash forecast should model shipment dates, settlement timing, expected VAT recovery and currency exposures. An accounting profit does not eliminate the need for working capital.
Documents that make a cross-border accounting review possible.
The list depends on whether the client imports, exports, trades online, uses warehouses or operates through multiple companies or customs representatives.
Company number, VAT details, GB/XI EORI identifiers where relevant, accounting dates and tax agent records.
Supplier and customer terms, invoices, credit notes, Incoterms, payment schedules and trading routes.
Import and export declarations, MRNs, shipping evidence, freight invoices, duty statements and representative details.
Monthly postponed import VAT statements, C79 certificates where applicable, VAT returns and related reconciliations.
Purchase orders, goods-received notes, stock counts, inventory valuation methods and landed-cost allocations.
Multicurrency bank statements, exchange-rate schedules, overseas receivables, supplier balances and financing terms.
Specialist industry context, connected to core UK services.
This page explains the industry-specific problems; follow the linked service pages for the underlying professional work and client engagement information.
Connected support, clear obligations and no unsupported guarantees.
Britvex confirms its engagement scope in writing. Accounting records and tax work do not substitute for separate employment, customs or other specialist regulated advice. Directors retain responsibility for the completeness of their company records and filings.
Review the authoritative rules, not unverified shortcuts.
Official HMRC and government guidance supports the distinctions explained on this page. Individual transactions must be assessed against current rules and the client’s actual facts.
- HMRC — When you can use postponed VAT accounting — HMRC / GOV.UK
- HMRC — Completing your VAT return for import VAT — HMRC / GOV.UK
- HMRC — VAT on goods exported from the UK, Notice 703 — HMRC / GOV.UK
- GOV.UK — Export customs clearance process — HMRC / GOV.UK
Import and export accounting questions, answered.
The answers explain UK financial and VAT processes. Customs classification, export evidence and overseas tax obligations remain specific to the goods, legal parties and jurisdictions.
What does an import and export accountant help with?
An engagement may cover import VAT reconciliation, sales and purchase bookkeeping, landed stock costs, exchange differences, VAT returns, Corporation Tax, annual accounts and reporting. Customs declarations and tariff advice may require a specialist customs agent.
What is postponed VAT accounting?
For eligible UK VAT-registered importers, postponed VAT accounting allows import VAT to be accounted for on the VAT return rather than paid upfront on import. The normal input VAT recovery rules still apply, and the process needs supporting customs records and monthly statements.
Does postponed VAT accounting cancel customs duty?
No. It addresses the timing of import VAT accounting and does not remove customs duty or all cash liabilities at the border. Duty liability and any relief follow customs rules that need separate consideration.
What is an MPIVS and why does it matter?
An MPIVS is a monthly postponed import VAT statement. It helps the business reconcile amounts declared under postponed VAT accounting to the relevant VAT return and customs declarations. Missing entries should be investigated with the declarant and the company’s identifiers.
Can I reclaim import VAT using a supplier invoice alone?
Not usually. UK input VAT recovery on imports relies on the appropriate import evidence and legal entitlement; a supplier invoice by itself is not a substitute for C79 evidence or the correct postponed import VAT records. The importer and ownership position must be examined.
Are all exports from the UK zero-rated for VAT?
No. Qualifying exported goods can be zero-rated only when the conditions are satisfied, including evidence that the goods left the relevant territory within the appropriate period. Some transactions fall under different rules, particularly goods movements involving Northern Ireland.
How long do I have to obtain export evidence?
Under HMRC Notice 703, ordinary direct and indirect exports commonly require the goods to be exported and valid evidence obtained within three months of the time of supply, with specific exceptions. Supporting export evidence should be retained for the required period, generally six years.
Do I need a GB EORI to trade internationally?
A GB EORI is generally needed for the relevant UK customs processes when exporting goods from or importing into Great Britain. Northern Ireland movements may require an XI EORI or a different arrangement. The necessary identifiers depend on the movement and role.
Is freight automatically part of the purchase cost of stock?
Inbound freight and other directly attributable costs can form part of inventory cost under the applicable accounting rules; outward delivery to customers can be different. Recoverable import VAT is not automatically a stock cost. Apply a consistent landed-cost method.
How do I record an invoice issued in US dollars or euros?
Record the transaction under the company’s accounting policies and relevant exchange-rate rules. A later change in the sterling value of an unsettled balance or actual currency conversion can produce exchange differences separate from sales or purchases.
Can I use the same VAT code for EU and non-EU transactions?
Not safely. Great Britain, Northern Ireland, sales of goods, supplies of services, imports and exports have different rules. The VAT code should reflect the exact goods movement, recipient, time of supply and supporting documentation.
Can a UK trading company have VAT obligations overseas?
Yes. A UK company can have a foreign VAT or sales-tax obligation because of stock location, marketplace activity, customer type or domestic supplies in the destination country. Such questions require jurisdiction-specific analysis, not an assumption that UK VAT registration covers every sale.
Can Britvex replace my customs broker?
Britvex can assist with UK accounting, VAT records and reconciliations under an agreed engagement. Customs declarations, tariff classification, licensing and certain representation or legal matters may require a competent customs specialist; accounting assistance should not be described as blanket customs authorisation.
What information should I send before an initial enquiry?
Provide a summary of products, supplier and customer countries, EORI/VAT details, average shipment volume, stock arrangements, accounting system and main concerns such as unreconciled import VAT or weak landed-cost reporting. We can then define a proportionate document request.
Know the real cost—and tax position—of every trading transaction.
Explain your import or export model, the countries involved and how you currently record customs entries, VAT, stock and settlements. Britvex can review which UK accounting and tax work is appropriate and agree an evidence-led engagement scope, with specialist referrals where needed. We do not guarantee customs or tax outcomes.
UK practice · International client access
+44 20 3758 7500info@britvex.co.ukbritvex.co.uk · britvex.com