Tax warehouses (rules until 31 December 2020)

Produced by Tolley
Tax warehouses (rules until 31 December 2020)

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

  • Tax warehouses (rules until 31 December 2020)
  • Tax warehouses
  • Trading in a tax warehouse
  • Deficiencies
  • Removing goods from the warehouse to the UK
  • Accounting for VAT on goods removed
  • Removal documents
  • Claiming input tax
  • Removing goods from the tax warehouse to an overseas location
  • Removing own goods to an overseas destination
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

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 (rules until 31 December 2020) 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:

  1. distilleries

  2. excise warehouses

  3. refineries, and

  4. 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

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