No: C&E 9                             29 November 1994


                          BUDGET 1994 : VAT

            PAYMENT FOR GOODS REMOVED FROM EXCISE WAREHOUSE


The Chancellor proposes to give statutory backing to the
long-standing concessions which allow the payment of VAT due when
goods are removed from excise warehouses to be deferred.

The Chancellor's intention is to regularise existing trade
facilitation measures. The changes will take effect from
Royal Assent.

NOTES FOR EDITORS


1.     The amendments will provide Customs with the powers
to make regulations which will clarify the legal position concerning
payment of VAT due on goods removed from excise warehouses.  For
most goods excise duty must be paid, on average, one month after they
have been  removed, and it is accepted practice for payment of
associated VAT to be made at the same time, instead of becoming due at the
time of removal from warehouse. Different conditions apply to the
deferred duty arrangements for hydrocarbon oils, and there is a
separate concession for deferred VAT payments which is also being
legislated for.

2.     The estimated revenue change arising from this
measure is nil.

3.     Details for traders are available in Budget notice BN
100/94.




ISSUED BY:         HM CUSTOMS AND EXCISE,
                   PRESS AND INFORMATION OFFICE,
                   NEW KING'S BEAM HOUSE,
                   22 UPPER GROUND,
                   LONDON, SE1 9PJ

TELEPHONE:         0171 865 5468/5470/5471

FAX:               0171 865 5625