Italy consignment call-off stock VAT
Foreign entities maintaining stocks of goods in Italy when they have no local permanent establishment (local company, staff, offices etc.) may have to register for Italian VAT to record and report the arrivals/import of goods into Italy and subsequent sale.
Italian 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 Italy:
Italian Call Off Stock
Where goods are held under the full control of single Italian customer on a sale or return (contratti estimator - where legal title does not pass till the goods are retrieved by the customer) there is a simplification exemption which means there is no requirement to register the foreign company for Italian VAT.
The customer is deemed to have made an intra-community supply when they withdraw the goods. Both parties must complete a special stock agreement to support this VAT arrangement. Also, the goods must be transferred legally to the consignee within one year.
Italian Consignment Stock
Where goods are held in a warehouse for multiple customers in Italy, and remain under the control of the foreign company, there is an obligation to register for Italian VAT.
However, Italian domestic reverse charge rules may apply.
Note, if the goods are coming from outside the EU, they are an import (as opposed to an intra-community supply), and a registration may be required on this basis alone.
Other resources
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