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.

Latest German news

German consignment stock 2019 extension

November 18, 2018

Germany has extended the timetable for the implementation of consignment stock VAT registration simplification until the start of 2019....

Germany passes marketplace VAT liability laws

November 12, 2018

On 9 November 2018, the German Parliament passed a new law making online marketplaces potential liable for unpaid VAT by third-party merchants on their platforms....

Germany advances marketplace VAT liability bill

August 1, 2018

On 1 August 2018, Germany’s federal cabinet (Bundesregierung) approved a draft bill to oblige online marketplaces to capture key VAT data and compliance on third-party sellers...