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HMRC internal manual

VAT Supplies in Warehouse and Fiscal Warehousing

HM Revenue & Customs
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Fiscal warehouses: The aim of fiscal warehousing

Fiscal warehousing is a regime in which certain specified commodities that are of EU origin or that are in free circulation can be placed in an authorised warehouse and be traded VAT-free whilst they are subject to the regime. Commodities eligible for fiscal warehousing therefore enjoy the same tax-free trading available to third country commodities inside customs warehouses and to EC excisable goods in tax warehouses. The goods that are eligible are listed in VWRHS5400. Sales of goods intended to be placed in a fiscal warehouse, supplies of goods and supplies of certain specified services relating to goods within warehouse can be relieved from tax. The goods themselves may be liable to tax on removal from the regime, as may associated services which have been previously relieved. Liability to taxation on removal is explained in VWRHS4130.

Dealers in fiscally warehoused goods are not required to register for VAT in the UK if the value of any supplies they make outside the regime does not reach the normal registration threshold. The value of sales made within the regime does not count towards this threshold. Traders may choose to register voluntarily under the provisions of Schedule 1, section 10 of VAT Act 1994 (see V1-28 Registration).

As with both tax and customs warehousing, retail sales are not allowed in a fiscal warehouse. All goods entered to fiscal warehouse must be in free circulation and, if appropriate, excise duty-paid.