Call-off stock, consignment stock and transfers of own goods (until 31 December 2020)

Produced by Tolley
Call-off stock, consignment stock and transfers of own goods (until 31 December 2020)

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

  • Call-off stock, consignment stock and transfers of own goods (until 31 December 2020)
  • Simplified treatment of call-off stock from 1 January 2020
  • Register of movements
  • Events that can trigger a requirement for the supplier to register for VAT (a ‘relevant event’)
  • Substitution rule
  • Returning goods
  • Practical implications
  • Call-off stock ― simplification rules applicable in the UK prior to 1 January 2020
  • Continuation of pre-1 January 2020 rules
  • The conditions
  • More...

This note applies to transactions whilst the Great Britain was a member ofthe EU and during the transition period that ended on 31 December 2020. For information on Northern Ireland see the Northern Ireland topic. There are special rules regarding the transfer ofstock or own goods from one EU member state to another. The main rules regarding call-off stock, consignment stock and movements ofown goods are explained below.

Simplified treatment ofcall-off stock from 1 January 2020

Call-off stock is the term used to describe goods held for an individual customer, usually in a warehouse at the customer’s own premises, where 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.

From 1 January 2020 (UK legislation will be applied retrospectively from that date), the movement ofthe goods into the customer’s warehouse is no longer treated as an intra-EU movement ofgoods. The intra-EU movement is deemed to occur when the customer calls off the stock; at that time, the supplier will treat the sale as a normal intra-EU dispatch and the customer will account for acquisition tax on the value ofthose goods. As a result, there is no requirement for the supplier to register for VAT in the customer’s member state. This simplification can only be used if the supplier does not have a fixed establishment in the member state where the call-off stock is held.

Register ofmovements

Businesses (both suppliers and customers) who elect to use this simplification are required to keep a register and the supplier must complete an EC Sales List in respect ofthe movement ofgoods that contains only the

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