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The call-off stock regime is not applicable in case of triangular intra-community transactions

The Italian tax authorities have ruled on whether the call-off stock regime can be applied to triangular intra-Community transactions. The applicant, Alfa, plans to enter into a call-off stock contract with company Beta, who has a permanent establishment in EU Country X. Alfa would deliver goods to the company Gamma, Beta’s customer in EU Country X, and Gamma would transport the goods to their warehouse in EU Country X. At the time of withdrawal from the warehouse, there would be two simultaneous changes of ownership. The applicant asks if it is possible to apply the call-off stock contractual scheme to this relationship, even though it is part of a broader operation that can be traced back to an intra-Community triangulation. The Italian tax authorities listed some conditions required for the application of such regime, including that the transfer of goods must be carried out by the supplier or by a third party on their behalf. They reaffirmed that in order to apply the simplification of the call-off stock regime, it is essential that the transfer of goods from Italy to EU Country X is carried out by Gamma on behalf of Alfa. The supply contract between Alfa and Beta can only qualify as a call-off stock contract if certain conditions are met. The Italian tax authorities specified that the operational scope of such regime must be limited to the intra-Community transaction between the supplier and the designated purchaser, involving exclusively such persons.

Source PwC


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