V3.502 Person liable to account for and pay output tax
Tax on any supply of goods or services is, in general, a liability of the person making the supply1. It is immaterial whether the supply relates to a person's stock in trade or fixed assets2. Similarly, tax on any acquisition of goods from another EU member state is a liability of the person who acquires the goods3. A taxable person is required to account for such tax4.
The requirement to account for and pay output tax cannot be avoided merely because—
(1) the person has not received payment5;
(2) it is perceived to be inequitable6;
(3) there is no net loss of revenue to the authorities7; or
(4) the supply was for a consideration other than in money8.
However, if a supply is made when a person is neither registered nor liable to be registered for VAT, no VAT can be chargeable on that transaction9.
These general rules are modified by the provisions described below.
(i) Warehoused goods
A supply of dutiable goods10 subject to a warehousing regime is treated as taking place in the UK, and is charged to tax, in the circumstances described in V5.141. Any tax payable on the supply must be paid by either11—
(1) the person who removes the goods (if the supply is treated as taking place at the time of removal); or
(2) the person who is required to pay the excise duty, customs duty or EU agricultural levy concerned (if the supply is treated as taking place