UK consignment and call off stock

Non-UK companies with no UK permanent establishment (local company, staff, offices etc.) that are holding goods in the UK may be liable to UK VAT register their company, and report any intra-community supplies and subsequent domestic sales in the UK.

UK VAT stock simplification

There are two regimes in the European Union for VAT compliance on stocks held in another EU member state.  The UK’s implementation of these are summarised below:

UK call off stock

If a non-UK seller provides and intra-community supply of goods to a location or warehouse controlled by a single customer, but the title does not change hands, then there should be no need for the non-UK company to VAT register.  The goods must be held on a sale or return basis.  The buyer will record the intra-community arrival and the domestic sale.

UK consignment stock

If instead the goods are held by a foreign company in a location they control, and the goods are intended for multiple final customers or consignees, then this will require a UK VAT registration by the seller.  This is known as Consignment Stock.  The seller records the intra-community movement of the goods to the UK, and then the domestic supply to the UK customer.

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.

Latest British news

UK HMRC wins catering VAT case

February 4, 2019

HMRC has won a tax tribunal ruling which held that the sandwich shop chain, EAT Limited, had to charge 20% VAT on its bacon breakfast muffins and grilled ciabatta bread products. EAT is now obliged to settle a £632,620 VAT bill for failing to levy VAT on these products.

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. 

UK MTD pilot open to VAT groups

January 24, 2019

HMRC has extended the Making Tax Digital for VAT pilot to members of VAT Groups. MTD will require over 1 million businesses above the £85,000 VAT registration threshold to record