Value Added Tax Act 1994

Changes over time for: Section 18

Alternative versions:

Changes to legislation:

There are currently no known outstanding effects for the Value Added Tax Act 1994, Section 18.

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

18 Place and time of F1... supply.U.K.

[F2(1)A supply of goods which are subject to a warehousing regime is to be treated, for the purposes of this Act, as taking place outside the United Kingdom where —

(a)those goods have been brought into the United Kingdom,

(b)the material time of that supply is while those goods are subject to that 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.]

[F3(1A)The Commissioners may by regulations prescribe circumstances in which subsection (1) above shall not apply.]

(2)Subsection (3) below applies where—

F4(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)any person makes a supply of—

(i)any dutiable goods which were produced or manufactured in the United Kingdom F5...; or

(ii)any goods comprising a mixture of goods falling within sub-paragraph (i) above and other goods.

(3)Where this subsection applies and the material time for the F6... supply mentioned in subsection (2) above is while the goods in question are subject to a warehousing regime and before the duty point, that F6... supply shall be treated for the purposes of this Act as taking place outside the United Kingdom if the material time for any subsequent supply of those goods is also while the goods are subject to the warehousing regime and before the duty point.

(4)Where the material time for any F7... supply of any goods in relation to which subsection (3) above applies is while the goods are subject to a warehousing regime and before the duty point but the F7... supply nevertheless falls, for the purposes of this Act, to be treated as taking place in the United Kingdom—

(a)that F8... supply shall be treated for the purposes of this Act as taking place at the earlier of the following times, that is to say, the time when the goods are removed from the warehousing regime and the duty point; and

(b)F9... any VAT payable on the supply shall be paid (subject to any regulations under subsection (5) below)—

(i)at the time when the supply is treated as taking place under paragraph (a) above; and

(ii)by the person by whom the goods are so removed or, as the case may be, together with the duty or agricultural levy, by the person who is required to pay the duty or levy.

[F10(5)The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT he is required to pay by virtue of paragraph (b) of subsection (4) above at a time later than that provided for by that paragraph.

(5A)Regulations under subsection (5) above may in particular make provision for either or both of the following—

(a)for the taxable person to pay the VAT together with the VAT chargeable on other supplies by him of goods and services;

(b)for the taxable person to pay the VAT together with any duty of excise deferment of which has been granted to him under section 127A of the M1Customs and Excise Management Act 1979;

and they may make different provision for different descriptions of taxable person and for different descriptions of goods.]

(6)In this section—

“dutiable goods” means any goods which are subject—
(a)
to a duty of excise; or
(b)
in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the [F11European Union], to any F12... agricultural levy of the [F11European Union];
“the duty point”, in relation to any goods, means—
(a)
in the case of goods which are subject to a duty of excise, the time when the requirement to pay the duty on those goods takes effect; and
(b)
in the case of goods which are not so subject, the time when [F13import duty is incurred in respect of the goods] or, as the case may be, [F14the time a debt in respect of any] levy as is mentioned in paragraph (b) of the definition of dutiable goods [F15is incurred in respect of the goods];
[F16“free zone procedure” has the meaning given by the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 (S.I. 2018/1249) (see regulation 2(3)(b) of those Regulations);]
“material time”—
(a)
in relation to any F17... supply the time of which is determined in accordance with regulations under section 6(14) F17..., means such time as may be prescribed for the purpose of this section by those regulations;
(b)
F18... and
(c)
in relation to any other supply, means the time when the supply would be treated as taking place in accordance with subsection (2) of section 6 if paragraph (c) of that subsection were omitted;
“warehouse” means any warehouse where goods may be stored in [F19the United Kingdom] without payment of any one or more of the following, that is to say—
(a)
[F20import duty;]
(b)
any agricultural levy of the [F11European Union];
(c)
VAT on the importation of the goods F21...;
(d)
any duty of excise F22... [F23,
but does not include a warehouse so far as it is used for the storage of goods declared for a free zone procedure.]

(7)References in this section to goods being subject to a warehousing regime is a reference to goods being kept in a warehouse or being transported between warehouses F24... without the payment F25... of any duty, levy or VAT; and references to the removal of goods from a warehousing regime shall be construed accordingly.

Textual Amendments

F1Words in s. 18 heading omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 16(8) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)