Tax warehouses

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Tax warehouses
  • Tax warehouses
  • Trading in a tax warehouse
  • Removing goods from the warehouse to the UK
  • Removing goods from the tax warehouse to an overseas location
  • Removing own goods to an overseas destination
  • Drawback (refund) goods
  • Providing services in a tax warehouse

This note provides an overview of the VAT treatment of supplies and processes that are undertaken in a tax warehouse storing goods that are liable to excise duty Please note that this guidance note only deals with the UK aspects If goods are being moved in or out of a tax warehouse in another EU country it will be necessary to check local requirements Please note that all references to EU countries below relate to VAT territories within the EU not the same as customs territories and more information can be found in the EU countries VAT compliance information guidance note Tax warehouses Tax warehouses are premises that have been authorised by HMRC where goods that are subject to excise duty can be produced processed held received or dispatched under duty suspension regimes by an authorised warehouse keeper They include the following premises HMRC Notice 702 10 2006 112 EC Article 155 VATA 1994 s 18 SI 2010 593 reg 3 1 De Voil Indirect Tax Service V3 332 V5 141 distilleries excise warehouses refineries and registered premises stores Please see HMRC Excise Notice 197 for more information on the requirements imposed upon an excise warehouse keeper Trading in a tax warehouse If a business only activities in the UK are trading goods located in a tax warehouse then there will be no requirement to register for UK VAT as the activities undertaken in the warehouse are not taken into consideration when determining whether the UK VAT registration threshold has been exceeded However the business can elect to register voluntarily in the UK if this is desirable in order to recover input tax incurred under VATA 1994 Sch 1 10 If the business undertakes activities in the UK outside of the warehouse then it may need to register for VAT in respect of those activities if they exceed the VAT registration threshold Please see the Overview registering for VAT guidance note for more information on

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