The term ‘call-off
stock’ is often used as a synonym for, or to some extent interchangeably with,
‘consignment stock’. From a technical perspective, however, it is important to
distinguish between the contractual and commercial aspects and those relating
to tax and EU law.
This is a special
regime provided for by Directive (EU) 2018/1910. The relevant Italian legal
basis is Article 38-ter of Decree-Law 331/93.
The simplification
provided for by the Directive consists in the fact that the transport of goods
from the supplier’s EU country to Italy, at the time of dispatch, is not in
itself considered an intra-Community sale to the supplier. The intra-Community
supply and the related intra-Community acquisition take place only at the
time of collection. Furthermore, the supplier is not required to register
in the customer’s EU Member State, provided they comply with the rules on call
stock.
The application of the simplified scheme presupposes that:
- the supplier is not resident nor has a fixed establishment in the Member State of destination
- the goods are transported or dispatched from one Member State to another
- the goods are intended from the outset for a customer already known
- the purchaser must be registered for VAT in the Member State of destination
- there is a contract between the parties
- the movement of goods between the parties must be recorded and documented in appropriate registers
Requirements and obligations: Supplier
- at the time of dispatch of the goods to Italy, an intra-Community purchase in Italy is not immediately triggered at the supplier’s expense
- there is no obligation to submit Intrastat declarations
- the supplier must issue an appropriate consignment note or delivery note
- must record the transaction in the relevant stock ledger
- upon collection, an intra-Community supply takes place from the supplier’s country to the Italian customer
Requirements and obligations: recipient
- the recipient makes an intra-Community purchase in Italy upon collection
- applies the reverse charge mechanism in accordance with the reverse charge scheme provided for by domestic VAT rules for intra-Community purchases
- may deduct input tax in accordance with national provisions, provided they are entitled to do so
Time limits for call-off stock
EU rules on call-off
stock generally stipulate that delivery to the designated customer must take
place within 12 months of the goods’ arrival at the warehouse in the
Member State of destination.
If, within this
period, the goods:
- are not collected by the customer
- are delivered to another person, except in permitted cases
- are transported to a Member State other than Italy
- are missing, destroyed or stolen
the simplified scheme
may cease to apply, with the result that the normal VAT consequences of the
transfer apply. In this case, a fictitious intra-Community acquisition is
deemed to have taken place in Italy, with the supplier being required to
register for VAT.
Question
Is it possible to
subsequently change the name of the customer I provided at the time of delivery
of the goods in Italy?
Yes. It is possible,
within twelve months of the goods’ arrival in the territory of the other Member
State, to replace the consignee with another taxable person, provided that all
the required conditions are met at the time of the replacement.
A general description
and a general comparison of similar contracts are available on our glossary
article Consignment Stock Agreement