vat question

Call off stock rules

VAT Question

The EU is making changes to the call off stock rules from 1st January 2020. Will this affect me as I keep my stock in a fulfilment centre in the EU? I only sell to consumers (B2C).  

VAT Answer

Call off stock is the term used to describe stock owned by a supplier which is held in another EU country where their customer is located, (probably in a warehouse, fulfilment centre or other location), in order to speed up the time it takes for the goods to get to their customers.  

The change to the rules surrounding call off stock will apply to UK suppliers selling call off stock to their EU business customers only (B2B).

From 1st January B2B sales of call off stock may be treated as an Intra EU dispatch of goods when the B2B customer calls them off (as long as the stock is called off within 12 months of them arriving in that EU country). This simplification will mean the supplier no longer has to be VAT registered in the customer’s EU member state, (unless the supplier has a fixed establishment in the EU member state where the customer is located).

There are no changes required if you are selling B2C. So, if you are a UK business and keep your stock in for example a fulfilment centre in France and supply non-VAT registered customers (B2C) in France, you will still be required to remain VAT registered in France and charge French VAT on your sales to your customers and file a French VAT return.

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