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Intra-Community Vat

SPAIN. Differences between Call of stock and Consignment Stock.

Call Off stock.

In this case the goods are sent from your home country to a warehouse or client’s storage facility in another EU country. Title of the goods still remains with the seller. If a customer has control of the storage, is aware of stock movements and may take stock at will, then if is categorized as Call Off stock and does not generally require the seller to VAT register in the foreign country as a non-resident trader.

For European VAT purposes, any eventual sale it is treated as an intra-community VAT supply. This means the sale is recorded under the seller’s domestic  VAT number and return. The customer only has to register the sale as an acquisition in its local VAT return. Reporting under Intrastat and EC Sales Listing may still be required.

Consignment stock.

In this case the goods are sent:

To the seller’s warehouse but under seller’s control, with his prior approval for any acquisition fron the customer.

The goods are sent for their sale to multiple potential customers.

This has a different treatment of EU VAT purposes than Call Off stock. The movement of goods to the warehouse is treated as a supply. This means the Seller has to VAT register itself in the country of destination. The movement is treated as a self-sale (acquisition). Intrastat reporting will be required at this point, too. But when the goods are then sold to the customer, no local VAT is charged.