In this way, you do not need to register (any longer) for the VAT in the Member State in which the goods are stored as stock and are on call.Would you like to have more information? The conditions for this simplification to apply are: The stock must be kept under control of the consignee either in its own premises or a warehouse designated by him.
As from 2020, VAT simplification schemes for international trade in goods: quick fixes Introduction of minimum capital for banks and insurersConditional withholding tax on interest and royalties Four changes in the VAT system, the "quick fixes", will take effect from 1 January 2020. In a (small) number of EU member states simplification measures have been taken into account to avoid foreign owners of goods held in ‘call-off’ having to register in those member states. On the basis that the delayed timing of the legal title transfer potentially creates additional VAT compliance in the MS of arrival and therefore administrative cost for the supplier, many MS (but not all) already apply certain simplification arrangements that remove the need for a local VAT registration. Simultaneously, your purchaser must indicate an intra-Community purchase in the Member State in which he or she withdraws the goods from (call-off) stock. This would require the supplier to register in the MS of arrival in order to perform an Intra-EU despatch together with an Intra-EU acquisition, followed by a domestic supply to the customer at the time of call off. and this alert will appear once and then not again. As from 1 January, the Dutch government wants to introduce a minimum capital rule for banks and insurers in order to achieve a more equal treatment of equity and borrowed capital. Only at the time that your purchaser actually "calls off" the goods – in other words, withdraws form the stock – does an intra-Community delivery take place for you from the Netherlands.
With "call-off", the new rules should result in not having to register in the Member State to which you are transferring the goods. Treatment of call-off stocks varies between Member States.
Vice versa, your company can also be the purchaser of goods which another EU entrepreneur has transferred and stored for you until the "call off".With a consignment shipment, the EU purchaser of the goods is not (yet) known upon transfer of the goods to the other Member State. Usually, you must indicate a (fictitious) intra-Community purchase in the other Member State to which you transfer the goods. Please see www.pwc.com/structure for further details.
However, these solutions are implemented at a national level and inevitably differ from one MS to the next which can make their practical use complex from an operational perspective.In order to simplify and harmonise the approach across the EU, from 1 January 2020 where the supplier already knows the identity of the customer in advance of the transfer of stock, the initial movement of goods will be ignored for VAT purposes and instead there will be a direct Intra-EU despatch by the supplier and acquisition by the customer at the time when the customer takes the goods out of the stock (thereby removing the need for a local VAT registration for the supplier), provided that:Information on the second quick fix to follow soon...For a deeper discussion of how these issues might affect your business, please call your usual PwC indirect tax specialist or if you prefer to speak to one of our global indirect tax policy specialists, please contact:Read hundreds of news articles by registering for GlobalVATOnline. © 2012-2020 PwC. Since the Hungarian VAT regulations have already introduced the possibility of this simplification, the introduction of new EU-level rules does not make for a significant change in this area at first glance. It should be noted that the EU Commission is currently preparing Explanatory Notes (‘Notes’) to clarify certain aspects of the rules which have now been published in draft available via this Call-off stock is the term used to describe the supply of goods to a customer’s premises where legal title in the goods does not pass until the customer actually calls-off the goods as and when required. Four changes in the VAT system, the "quick fixes", will take effect from 1 January 2020. You are therefore delivering "to yourself", as it were. NB: This is not to be confused with consignment stock which is when the supplier holds stock in a particular territory from which to meet future (as yet unspecified) customer orders as and when required. Many Member States, including the Netherlands, already have rules to simplify this process. It should also be noted that whilst the intention behind the Quick Fixes is to simplify, in practice the rules carry a certain amount of complexity without resolving all, or indeed many, of the VAT issues at stake.This Bulletin elaborates on the nature of the rules from an EU VAT law perspective, as well as setting out practical considerations and questions that businesses should take into account in order to determine the potential threat or strategic opportunity that the Quick Fixes present. Simplification of Call-Off Stocks on a community level This entails an extra administrative burden. The European legislature is now proposing rules which will be in effect throughout the entire EU as from 2020. This site uses cookies. You then apply the zero-rate VAT.
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