If your supplier invoice, customs declaration and postponed VAT accounting (PVA) statement all show different figures, that does not automatically mean one of them is wrong. They measure different parts of the import transaction. The important point is that the figures should be explainable and reconcilable before the VAT return is filed.
Quick answer: why do the figures differ?
A supplier invoice normally shows what the overseas supplier charged you. Under HMRC customs valuation rules, the customs value can require adjustments for costs such as transport, insurance, loading, handling and packing where they are not already included. The value used for import VAT can be higher again because it can include Customs Duty and certain incidental costs up to the first UK destination, or a known further destination.
Your monthly PVA statement is generated from customs declarations recorded against your EORI number. It is not generated from the supplier bills entered into Xero, QuickBooks or another accounting system.
In short: supplier invoice value, customs value and import VAT value do not have to be identical.
Why can customs value be higher than the supplier invoice?
HMRC Method 1 starts with the price actually paid or payable for goods sold for import to the UK and then applies required adjustments. Delivery costs to the UK border can be part of the customs value, including relevant transport, insurance, loading and handling costs.
For example, suppose the goods cost GBP 60,000 and relevant freight and insurance to the UK border are GBP 4,500. An illustrative customs value could be GBP 64,500. The GBP 60,000 supplier invoice is not necessarily wrong; it is simply answering a different question.
Why can the import VAT value be higher again?
The import VAT value is based on the customs value but may also include Customs Duty, other import charges and incidental expenses such as customs clearance, transport, insurance, handling and storage where the rules require them to be included.
Using an illustration only: customs value GBP 64,500, Customs Duty GBP 2,580 and relevant additional costs GBP 900 would give an import VAT value of GBP 67,980. If the goods are standard-rated at 20%, the illustrative import VAT would be GBP 13,596. The actual duty and VAT treatment depends on the product, commodity code, origin and any relief or preferential treatment. Check the UK Trade Tariff for the goods concerned.
Why does the PVA statement not match the purchase ledger?
Timing is one of the most common reasons. A supplier invoice may be dated and posted in June, while the goods enter the UK and the customs declaration is accepted in July. The purchase therefore appears in the June ledger, while the postponed import VAT appears on the July PVA statement.
For regular importers, it is usually more useful to reconcile by shipment or customs entry than to compare one quarterly purchase total with one quarterly PVA total.
What if an import is missing or duplicated on the PVA statement?
If an expected entry is missing, check the import date, the customs declaration, the EORI number used, whether PVA was selected and whether the entry belongs to another VAT period or a related company. HMRC specifically tells businesses using an agent to confirm that import VAT was allocated to the correct EORI number.
There is also a current PVA issue worth knowing about. HMRC guidance updated in May 2026 says some monthly statements can contain duplicated entries. Where a duplicate has the same movement reference number and VAT amount as the original, HMRC says the business should make a manual adjustment to the statement and account for the revised amount.
Do not leave statement downloads until year end. HMRC says PVA statements are only available online for six months from publication, so save them with the VAT records as part of your monthly process.
Where does PVA go on the VAT return?
Using PVA does not mean there is no import VAT. It changes how the VAT is accounted for. HMRC's PVA VAT return guidance requires the relevant figures to be included as follows:
- Box 1: import VAT due in the period on imports accounted for using PVA.
- Box 4: import VAT reclaimed in the period, subject to the normal input tax recovery rules.
- Box 7: total value of imports of goods in the period, excluding VAT.
For a fully taxable business entitled to recover all of the import VAT, the Box 1 and Box 4 VAT figures may often be the same. Both entries still need to be recorded correctly.
PVA statement or C79 certificate?
They are different evidence. If import VAT is accounted for using PVA, the monthly PVA statement supports the VAT return treatment. If import VAT was actually paid through the relevant process, a C79 import VAT certificate can provide evidence of the VAT paid.
A simple monthly PVA reconciliation process
- Record the overseas supplier invoice in the accounting system.
- Keep the customs declaration and movement reference number for the shipment.
- Download the monthly PVA statement before it falls outside HMRC's six-month access window.
- Match the PVA entries to the underlying customs declarations and shipments.
- Investigate missing entries, duplicates, unexpected EORI numbers and unusual VAT amounts.
- Record purchases, freight, Customs Duty and recoverable VAT in the correct accounts.
- Reconcile Boxes 1, 4 and 7 before the VAT return is submitted.
Frequently asked questions
Should my PVA statement equal my overseas purchases?
No. Customs valuation adjustments, duty, incidental costs, timing and foreign currency differences can all mean the figures are different. They should, however, be capable of reconciliation.
Is import VAT always 20% of the supplier invoice?
No. The VAT rate depends on the goods, and the import VAT value can include amounts beyond the supplier invoice price.
What if my freight forwarder used the wrong EORI?
Obtain the customs declaration and investigate the underlying entry. Correcting only the bookkeeping does not correct a customs declaration.
Can foreign exchange create differences?
Yes. Customs uses its own exchange-rate rules for customs valuation, while your accounting records and bank settlement may use different rates.
How Dali & Co can help
If your PVA statement does not match your accounts, the answer should not be a balancing journal with no explanation. Dali & Co helps import businesses connect supplier invoices, customs records, PVA, bookkeeping and VAT returns so differences can be identified before filing. Find out more about our import and export accounting, VAT return support and bookkeeping services.
Buying or selling goods across borders? Our import and export accountants in Harrow handle import VAT, PVA and customs records.