German consignment call-off stock

For foreign businesses holding stocks in Germany without a permanent establishment (local company, staff, offices etc.) there may be a requirement to register for German VAT to report the intra-community movements of goods into Germany and subsequent sales to local customers.  You can read about the EU Consignment and Call Off stock here.

German VAT stock simplification

For EU VAT compliance purposes, there are two types of stock regimes.  Below is a summary of how they are applied in Germany:

German Call Off Stock

Where goods are held under the full control of a single German customer (although legal title has not fully passed till the goods are retrieved) there is a simplification exception to remove the requirement to VAT register the foreign company in Germany. Instead, the seller treats the movement of the goods to Germany as a zero-rated sale immediately.

German Consignment Stock.

Where goods are held in a warehouse for multiple customers, and remain under the control of the foreign company, the foreign company must German VAT register to report the movement and sales of goods.

Note, if the goods are coming from outside the EU, they are a VAT import (as opposed to an intra-community supply), and a registration may be required on this basis alone.

Need help with your German VAT compliance?

Researching German VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

Latest German news

German delays Marketplace USt 1 TI Tax Certificate

February 22, 2019

The German Bundesministerium der Finanzen has delayed to 15 April 2019 the requirement for online marketplaces to have captured their third-party sellers’ new Tax Certificates. The marketplace USt 1 TI Tax Certificate confirms the VAT registered status of non-resident online sellers. From 1 March 2019, all non-EU sellers were to have these granted and passed to the marketplaces.

EU VAT and tax veto review

January 25, 2019

The European Commission (EC) has proposed switching from unanimous to majority voting on EU VAT and other tax policies.  The aim is to progress fiscal reforms which face immovable opposition from just a limited number of member states. 

German marketplace F22 Tax certificate

January 17, 2019

The German tax authorities will require sellers using online marketplaces to register for a new tax compliance certificate, ‘F22’. It will apply to non-EU sellers from 1 March 2019, and EU sellers from 1 October 2019.