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Call-off stock arrangements

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HMRC has published a policy paper outlining the changes to the rules for call-off stock arrangements between member states. The changes will be enacted through a new Sch 4B to VATA 1994 and a new reg 22ZA to the VAT Regulations, SI 1995/2518, together with some consequential amendments to existing legislation, with the government intending to include this measure in the next Finance Act. The measure will apply to cases where goods are removed from an EU country on or after 1 January 2020 (the legislation will therefore have a retrospective element). 

Under the measure VAT accounting, returns and reporting in accordance with the new legislation, where it applies, will be required in law in respect of goods removed from an EU country on or after 1 January 2020, and taxpayers will be required to correct returns where this has not been done. Businesses are also invited to preserve records and EC sales lists from 1 January 2020. 

HMRC has also updated VAT Notice 725, which outlines how to charge and account for VAT on the movements of goods within the single market, to amend the sections on call-off stock arrangements.
Issue: 1473
Categories: News