V5.141 VAT payment—goods subject to a warehousing regime
The VAT suspended on the entry of goods into a warehousing regime becomes payable, in general terms, when the goods leave the regime. The VAT in question may be:
• import VAT, ie the VAT due on goods entering the EU from a third country
• acquisition VAT, ie VAT due on goods removed to the UK from another EU member state, or
• supply VAT, ie VAT payable on a supply taking place within a warehousing regime
It should be noted that the alternatives are mutually exclusive. Thus, in general terms, if imported goods are supplied under a warehousing regime, the supply takes place outside the UK and is disregarded. Import VAT is due on removal. VATA 1994, s 18(1). Note that s 18(1A) provides that HMRC may by regulations (namely SI 1995/2518, reg 145K) make exceptions to this rule. The exceptions relate to retail sales. Other rules apply in relation to dutiable goods; see 'Importations, supplies and acquisitions of warehoused goods—charge to VAT'. See also VWRHS2000.
If goods acquired from another member state are supplied under a warehousing regime, the charge to acquisition VAT is extinguished and VAT is due on the last supply within the regime1.
Where the charge to tax arises on removal from a warehousing regime, the method of payment will normally equate to that applicable to non-warehoused goods, ie import VAT will be accounted for in the manner described in V5.115; acquisition VAT as described