Postponed VAT is a way to deal with VAT on Imports.

When importing goods HMRC applies to VAT on Import at the point of entry into the UK, usually requiring it to be paid before goods are released. Under regular VAT treatment, this VAT can only be reclaimed on a VAT return once you have received a C79.

Under Postponed VAT you or your supplier can elect for your import to be dealt with under Postponed VAT using CHIEF or Customs Declaration Service. Goods are then released from Customs without any Import VAT being paid. The Import VAT is then declared on the VAT return in Box 1 and 4 as both Output and Input VAT.