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HMRC internal manual

VAT Supplies in Warehouse and Fiscal Warehousing

Supplies of goods within a warehousing regime: Supplies of imported goods within a warehousing regime

Supplies of imported goods in warehouse are disregarded for VAT purposes under section 18(1) of the VAT Act 1994: they are treated as taking place outside the United Kingdom. On removal to home use, the goods may be subject to import VAT.


(a) any goods have been removed from a place outside the member States and have entered the territory of the Community;

(b) the material time for any acquisition of those goods from another member State or for any supply of those goods is while they are subject to a warehousing regime and before the duty point; and

(c) those goods are not mixed with any dutiable goods which were produced or manufactured in the United Kingdom or acquired from another member State,

then the acquisition or supply mentioned in paragraph (b) above shall be treated for the purposes of this Act as taking place outside the United Kingdom.

Accounting for removals from customs warehouses

Any tax due in respect of previously zero-rated services must be accounted for together with any import VAT and customs duty payable in respect of the relevant goods. The value of the service should be included in the value of the goods for import VAT purposes, in accordance with customs valuation rules.