Fiscal warehousing

By Tolley

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

  • Fiscal warehousing
  • What is a fiscal warehouse?
  • Eligible commodities
  • Authorisation
  • Isle of Man and Channel Island transactions
  • Supplying goods located in a fiscal warehouse
  • Services
  • Accounting for VAT
  • Fiscal warehousing record

This guidance note provides an overview of the VAT treatment of goods that are entered, removed or supplied in a fiscal warehouse.

What is a fiscal warehouse?

This is a regime where certain types of commodities that are already in 'free circulation' within the EU can be traded without the requirement to account for VAT. This regime would be beneficial for businesses who are not VAT registered in the UK, or required to be VAT registered in the UK, if this is the only business activity they undertake in the UK.

2006/112/EC , Art 160(2); VATA 1994, ss 1818F; SI 1995/2518, Reg 145A145J; VWRHS4000; HMRC Notice 702/8 ; De Voil Indirect Tax Service V5.141A

If a business has imported goods that are liable to excise duty then the Tax warehouses guidance note may be of more relevance.

If the goods are not in free circulation in the EU then see HMRC notice Customs special procedures for the Union Customs Code (Notice 3001)  for information on holding goods in a customs warehouse which may be of more relevance.

No output VAT will be due on the goods entering the fiscal warehouse or on any goods traded whilst in the warehouse. VAT will only become payable when the goods leave the fiscal warehouse regime.

Retail sales are not allowed in a fiscal warehouse and goods cannot be stored in a retail warehouse.

It is also possible for certain services supplied whilst the goods are in the warehouse to be supplied without VAT. More information can be found below.

Goods are usually considered to be in free circulation if they originated within the EU, or if they were imported into the EU, and all relevant import taxes and duties have been

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