Blog > Blog > European News > German call-off stock VAT registration - Avalara

German call-off stock VAT registration


German call-off stock VAT registration

The German Federal Tax Court (BFH) has ruled that non-resident companies providing call-off stock in German will no longer have to VAT register.  The tax authorities have yet to comment or apply the change.

The ruling, FG Hessen, concerned a Spanish company that held stocks with a German customer.  The customer controlled the terms of the stock warehousing and issuance, including free and exclusive access to the stock in Germany.   Delivery terms, pricing and stock levels had already been agreed in the terms of the contract between the two parties.

The BFH ruled that where the customer in German controlled the stock, it should be considered as call-off stock in the terms of the EU VAT Directive.  This means that any sale should be considered a nil-rated intra-community supply.  There is no obligation on the vendor to German VAT register.

Latest German news
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 on...
Germany warned on VAT refunds by EU
July 22, 2018

The European Commission (EC) has warned Germany that it must reduce its unreasonable restrictions on providing VAT refunds to non-resident businesses. In a reasoned opinion,...
Germany confirms marketplace liability for merchants’ unpaid VAT
June 27, 2018

Germany yesterday published the draft Annual Tax Act 2018, which includes making online marketplaces potentially liable for merchants’ unpaid VAT liabilities. This was agreed by federal...

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.