Call off stock, consignment stock and transfers of own goods

By Tolley
VAT_tax_img2

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Call off stock, consignment stock and transfers of own goods
  • Call off stock
  • Consignment stock
  • Movements of own goods to another EU member state
  • Goods supplied on a sale or return basis
  • Samples
  • Goods sent for testing

There are special rules regarding the transfer of stock or own goods from one EU member state to another. The main rules regarding call off stock, consignment stock and movements of own goods are explained below.

De Voil Indirect Tax Service V3.213 (subscription sensitive); HMRC Notice 725 
Call off stock

Call off stock is the term used to describe goods held for an individual customer, usually at the customer's own premises, and title transfers when the customer removes the stock from the warehouse. In effect, the customer calls off the stock when the stock is removed from the warehouse. The supplier owns the stock held in the warehouse until the customer calls off the stock. If the goods move from one EU member state to another, special VAT rules apply to the transaction. These are outlined below.

VATPOSG3850; VATSM4830
The conditions

In order to use the call off stock simplification measure the following conditions must be satisfied:

  • the goods transferred must be allocated to a specific customer and cannot be unallocated goods held in a general warehouse for distribution to more than one customer
  • the customer must intend to use the goods for either consumption within their business (ie used to make other goods) or intend to re-sell the goods to their customers

The call off stock is normally held at the customer's premises. However, it is possible for goods held at a supplier's premises to be treated as call off stock providing the goods stored are clearly identified as allocated to a specific customer and the customer is aware that the goods have been transferred into the warehouse.

If the conditions outlined above cannot be satisfied then the goods should be treated

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