EU VAT 4 Quick Fixes Call-Off Stock EC Sales Listing
- Dec 1, 2019 | Richard Asquith
The EU has agreed to introduce four ‘quick fixes’ from 1 January 2020 to the B2B cross-border transactions rules. These help clarify when zero-VAT rating may be applied, and harmonise the VAT registration obligations in certain cases.
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One of the quick fixes clarifies the situation where companies operating call-off stock arrangements with their EU customers may avoid the need to VAT register in the customer’s country. However, the rules oblige new reporting requirements in the monthly EC Sales Listing (ESL). This reports the cross-border transactions between EU VAT registered businesses.
New EC Sales listing call-off stock reporting
- The EC Sales lists are now required to include the VAT numbers of the companies with which a vendor has a “call-off stock” agreement.
- There are 3 types that need to be indicated in the ESL for each “call-off stock” agreement:
- Normal – where vendor and buyer remain the same
- Change of buyer
- Businesses will often not have this recorded. Therefore, their administrative burden has increased as they need to capture this.
- Currently there is no way to extract this information.
- Some countries, such as the Netherlands, only allow the cancellation and change of buyer option to be used in correction ESL’s.