After reading various notices and numerous phone calls with HMRC helplines and being referred to Technicians I am still at a loss as to whether we can zero rate our services:
In brief we are a trade facility warehouse and are going to be taking in bulk beer for processing and packaging into bottles all under duty suspension. Does anybody have any experience with this area and the charging of VAT on these services and whether it can be zero rated or not.
This is what I understand so far from notice 702/10:
The services can be zero rated at the time they are supplied as long as we hold the relevant certificate from the owner of the beer
However I am still confused as to whether or not the services would be subsequently taxed
Any help in this area greatly appreciated
Many thanks
Replies (1)
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Services within warehouse
In principle, VAT Act 1994, s18 provides for the zero rating of certain services within a warehousing regime. But you will need to confirm that your warehouse is eligible; and then that your services are covered by the provisions (PN 702/10, chapter 5).
You should speak with your Accountant to access a specialist in this area.