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
December 12, 2018
On 12 December, the European Commission published details of a new rule which would make large online marketplaces responsible for calculating, collecting and remitting VAT on certain B2C cross-border transactions below €150. Where goods are imported by an EU or non-EU merchant, and then sold via a marketplace in another EU country..
November 18, 2018
Germany has extended the timetable for the implementation of consignment stock VAT registration simplification until the start of 2019....
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....
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