What is the VAT treatment of storage costs?

This is a freeview 'At a glance' guide to the VAT treatment of storage costs.

The provision of storage facilities is standard rated.

  • This includes self-store and store of both business and personal goods provided that the storage is in a building, unit or enclosed container which is static.
    • Any supply of space in a container being used to transport freight is part of the supply of freight transport services and will be taxed accordingly.

Conversely, a grant of an interest in land, or a licence to occupy land is generally exempt from VAT.

This means that anyone who is letting out surplus space in a property will need to ask their tenants/licensees what they are doing with that space and then apply VAT as necessary.

  • If a landlord is not VAT registered, the value of supplies of storage should be included in turnover calculations in order to determine whether the VAT registration threshold is breached.
  • For those who are on the Flat Rate Scheme for VAT, all rents should be included in turnover when making their flat rate calculations for their returns.

Useful guides on this topic

Land & Property: Non-residential
This guide considers the VAT treatment of the supply of non-residential property.

Land & Property VAT
An outline of the VAT treatment of some of the more common supplies of land and property.

External links

VAT information sheet 10/13: provision of storage facilities

Land and property (VAT Notice 742)

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