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.
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:
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.
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