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HMRC internal manual

VAT Supplies in Warehouse and Fiscal Warehousing

HM Revenue & Customs
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Treatment of services associated with goods held within warehouses: Subsequent taxation of previously zero-rated services

Services which, at the time of supply, are zero-rated in accordance with section 18C(1)of the VAT Act 1994, will subsequently be taxed when the goods to which they are associated are removed from the warehousing regime to home use, or at the duty point, except in the following circumstances:

  • when the service creates new goods (VWRHS3040);
  • when the goods are supplied (whilst still warehoused) after the service was provided;
  • when the goods are exported under duty suspension arrangements directly from the warehouse to a third country;
  • when the goods are sent under duty suspension arrangements to a customs or tax warehouse in another member state; or
  • fiscally warehoused goods are sent to a warehouse established under similar provisions in another member state.