The call-off stock simplification is one of the EU VAT simplifications that will no longer be available to the UK with effect from 1 January 2021. Where a supplier sends their goods cross-border and the goods are stored in the EU member state of arrival before the customer calls them off, the simplification allows the supplier to avoid a VAT registration in the member state of arrival under certain conditions. The customer accounts for acquisition VAT instead.
The call-off stock rules were harmonised across the EU with effect from January 2020 and now state that the tax point for the acquisition VAT is when the goods are called-off.
Overseas suppliers and their UK customers should review their stock arrangements and ideally agree that all stock shipped in 2020 is called-off on or before 31 December 2020 at the latest to benefit from the simplification. Alternatively, the UK customer might consider accounting for acquisition VAT at the time the goods arrived in the UK so that all stock will be accounted for VAT purposes before the end of the year. From 1 January 2021 the overseas supplier will require a UK VAT registration for moving their goods on a call-off stock basis.
UK businesses selling goods on a call-off stock basis into the EU will likely require a VAT registration in the member state of their customer from 1 January 2021 and should discuss with their customer how to deal with any goods not called off by 31 December 2020.
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