Establishing a stock abroad involves different scenarios such as consignment stock, call-off stock, or advanced stock. VAT obligations for the supplier in the country of departure include issuing a transfer document, reporting the transaction in the VAT return, and recording it in the output ledger. The building up of advanced stock also entails VAT obligations in the Member State of arrival. A simplification scheme for consignment stock arrangements was introduced in 2020, but its application conditions are strict and may not cover all practical situations. Businesses with stocks in multiple Member States need to effectively manage VAT to optimize and avoid tax risks. This requires analyzing the flow of goods and invoices and matching them with countries applying a simplification scheme to establish an optimum model.
Source vatdesk.eu
