Commentary

V7.260A New rules relating to call-off stocks and intra-Community supplies

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.260A New rules relating to call-off stocks and intra-Community supplies

Part V7 Tax planning | Commentary

V7.260A New rules relating to call-off stocks and intra-Community supplies

On 1 January 2020, new EU rules came into effect in the UK. These new rules are known as the 'quick fixes' and are intended to simplify the VAT rules in relation to both 'call-off' stocks and intra-Community supplies. The UK has introduced the call-off stock legislation in Finance Act 2020. The other measures are imposed by EU Regulations and so have direct effect in the UK. It should be noted that these 'quick fixes' only apply in Northern Ireland with effect from 1 January 2021.

Call-off stocks

It is not uncommon for businesses to transfer goods from one country to another to enable supplies of the goods to a specific customer as and when the customer requires them. This is known as 'call-off' stock (the customer will call off the stock when they need it). Such movement of goods can and has posed historical difficulties for both traders and tax authorities. In simple terms, under the old rules, the movement of

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