- Businesses use consignment stock near customers to support just-in-time manufacturing, especially in automotive supply chains.
- Without the EU call-off stock simplification, moving goods to another Member State can trigger an intra-Community transfer, a deemed acquisition, and local VAT registration.
- The 2020 call-off stock quick fix removes the need for local VAT registration when stock is held for a known customer and specific conditions are met.
- If the rules apply, the movement is treated as one intra-Community supply only when the customer takes the goods, with the customer accounting for the VAT.
- Multinational companies must ensure both VAT compliance and correct SAP system setup to handle these transactions properly.
Source: meridianglobalservices.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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