Commentary

V16.420 Changes of VAT rules for call-off stock arrangements between the UK and EU member states

Part V16 Forms and other HMRC material

V16.420 Changes of VAT rules for call-off stock arrangements between the UK and EU member states

V16.420 Changes of VAT rules for call-off stock arrangements between the UK and EU member states

Who is likely to be affected

Businesses sending or receiving goods between the UK and member state (MS) of the EU in advance of the goods being 'called off'” for delivery (call-off stock).

General description of the measure

This measure implements changes required by Council Directive (EU) 2018/1910 to simplify the VAT treatment of call-off stock moved from the UK to another MS or vice-versa. The changes permit a supplier in the state of origin to remove call-off stock to storage in another state, the destination state, without accounting for VAT on the transaction at that time. The supplier and customer will account for the supply and acquisition when the goods are called-off. This avoids the need for the supplier to register for VAT in the destination state.

Policy objective

The purpose of the changes is to simplify the VAT rules for 'call-off ' stock and avoids the requirement for the supplier to register in the destination state.

Background to the measure

On 4 December 2018, the European Council adopted the VAT 'quick fixes' legislative package to harmonise and simplify certain rules and exemptions for cross-border supplies of goods with the aim of improving the VAT system for the taxation of trade between EU member states. These

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