At PTI Express, we have strategic partnerships with depots placed in Ireland. For all ROI freight we use DDP Lite incoterms. By utilising postponed VAT accounting in direct partnership with our Irish customs agent, we eliminate the need for upfront VAT payments, protecting your cash flow and ensuring your supply chain remains fluid. 

PTI Express navigates the technicalities of the PVA process so you don’t have to. If you need immediate clarity on how these rules apply to your specific shipments, get in touch with the PTI Express team today.

What is Postponed VAT Accounting (PVA)?

Postponed VAT Accounting is an Irish Revenue authorisation that allows the Import VAT to be accounted for on a periodic VAT return rather than being paid at the point of entry.

Under standard import rules, VAT is a "pay-on-entry" tax. This creates an immediate cash drain and often leads to shipments being held at the port until payment is verified.

The Financial Mechanics for Postponed VAT Accounting 

When PTI Express facilitate a PVA shipment:

• No VAT is paid at the border.

• The VAT is "postponed" to the importer’s next VAT 3 return.

• The importer declares the VAT as a liability and reclaims it as an input in the same return.

• The Net Result: A cash-neutral transaction that bypasses the need for physical payment at the port of entry, avoiding potential delays.

The Responsibility Matrix: Who Does What?

To ensure a seamless daily service, PTI Express clearly defines the roles between the carrier, the agent, and the importer. 

The PTI Express Pre-Check: Avoiding Port Delays

A shipment held for inspection or payment pending can cause significant delays and risk disruption to the supply chain. At PTI Express, we mitigate this through a proactive pre-clearance protocol.

Before any vehicle departs for the ferry, the PTI Express team work through documentation to ensure everything is correct, this includes:

• Verifying the correct paperwork is on file. Including a valid DRA form.

• Confirming the EORI/VAT numbers provided are registered with Irish Revenue.

• Ensuring there isn’t any missing or unclear data on the commercial invoice, including things like items, prices, weights, and items being assigned the correct commodity codes

Any errors identified, must be rectified before goods can be correctly declared, with our pre-check process we are able to significantly reduce errors/or eliminate errors before a shipment ever leaves the depot. The goods are then ready to be imported by our Irish Customs agent, with accurate documentation helping to minimise the risk of a customs hold. 

When this data can be validated without issue, the shipment can be assigned green routing, allowing the trailer to exit the port immediately without physical or documentary review. Our rigorous checks allow virtually all shipments to be cleared without issue, ensuring your goods keep moving. 

Eligibility: Are Your Customers PVA Ready?

It is a common misconception that an EORI number automatically grants access to PVA. To avoid any VAT on entry surprises, your business must meet three criteria:

1. Valid Irish VAT Registration: If you are not registered for VAT in Ireland, you cannot postpone it.

2. Valid EORI Number: This is your "ID" for customs. It must be linked to your VAT registration.

3. Active PVA Authorisation: You must apply for this via the Irish Revenue Online Service (ROS).

If you are switching to PTI from a partner who used different incoterms, or you would like more information on PVA, we can provide a checklist to help you verify your status with Irish Revenue before your first shipment.

Potential Bottlenecks and How We Solve Them

Even the best systems can face obstacles. At PTI Express, we prepare for every eventuality, to address any potential issues that may arise. Some of the most common clearance issues that arise are: 

Missing DRA Form

If our Irish Customs agent does not have your signed DRA form on file, they cannot legally use your PVA authorisation.

At PTI Express, we maintain a digital repository for our clients. We will not dispatch consignment of goods until we confirm your DRA is valid and on file, preventing held goods or storage fees.

VAT Number Discrepancies

A valid VAT number is a pre-requisite for PVA, but it doesn’t always mean it can be claimed. Individuals receiving goods cannot use PVA, Companies need to be registered with Revenue and you also need to earn over a certain threshold to apply.

Our data-entry team cross-references your paperwork against the EU's VIES system as part of our standard process.

Options For Handling Your VAT

If your customer is not VAT registered we can recharge the VAT to the seller (our customer) and you can liaise with your customer (the receiver/buyer) to settle the import VAT 

• We cannot reclaim VAT for you. The "right to deduction" belongs solely to the owner of the goods.

• We cannot issue VAT invoices for the cargo. We only invoice for the freight and customs clearance services.

• Audit Trail: We can provide you with the MRN (Movement Reference Number) and SADs for shipments on request. This is needed when completing your tax returns and PVA statement.

Onboarding with PTI Express

Choosing to work with PTI Express means moving away from manual VAT payments and the documentation headache, and moving towards an efficient supply-chain. 

The Onboarding Process:

1. Welcome pack. Credit check, direct debit completion for duties payments 

2. Documentation Audit: We review your customers current EORI and VAT status.

3. DRA Setup: Authorisation given for PTI and our Irish Customs agents to conduct clearance activities.

4. We confirm when everything is in place and the first shipment can proceed.

Don’t let customs complexities or VAT bottlenecks get in the way of fast, efficient delivery. Partner with PTI Express for an expert led transition to postponed VAT accounting and take advantage of our reliable daily shipping services to Ireland. Contact our team today to discover how our daily Ireland shipping and PVA expertise can transform your logistics.