VAT - Bonded Warehouses

A-Vic Expertise GuaranteedRegistered Posts: 6,970
We have a sales recepit for a client and VAT wasnt charged as it was stored in a bonded warehouse - just for my own knowledge am not 100% sure why can anyone explane why.

Thanks in advance



  • Jon_1984
    Jon_1984 Well-Known Registered Posts: 186
    Sorry to ask but was this for goods from abroad coming into the UK, goods bought into warehouse and immedately exported or the storage itself?
  • A-Vic
    A-Vic Expertise Guaranteed Registered Posts: 6,970
    this is for export the goods are imported in and are shipped out within the week
  • Jon_1984
    Jon_1984 Well-Known Registered Posts: 186
    Ok then:

    When you import items normally you pay Duty & VAT on them as they enter the country.

    If they go to a bonded warehouse they are not classed as having arrived in this country - this point is moved to the time they leave the warehouse onto "british soil".

    If you export them immediately then they are classed as not having entered the UK, but merely passing through in the same way a container ship may dock at Southampton or land at Heathrow but not unload everything before moving onto the next port. This applys even if title of ownership changes whilst in the bonded warehouse.

    This does mean the end customer, in the country where they ultimately end up, is responsible for clearing them through their customs and excise and paying any relevent duty/tax in that country (which may well be at a different rate to the UK).
  • A-Vic
    A-Vic Expertise Guaranteed Registered Posts: 6,970
    Great thanks i thought it would be something like that :)
  • Macbateman
    Macbateman United KingdomRegistered Posts: 3
    Oh Thanks @Jon_1984

    I don't much about it because I just opened a bonded warehouse in UK i.e, I am new in this field like you @A-Vic.
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