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Posted Wed, 02 Dec 2020 15:27:41 GMT by md vera
Hello I'd like to ask if there have been any changes to the 'Changes to the rules for call-off stock arrangements between the UK and EU member states' policy paper due to Brexit. I am guessing that after 1st Jan the goods entering the UK from the UE will be considered imports and when the goods are called-off, that will be standard domestic sale?. This means the EU supplier does not need to be VAT registered in the UK? I'd appreciate some help with this Thanks!
Posted Wed, 09 Dec 2020 08:08:30 GMT by HMRC Admin 8

Please refer to the latest published guidance for further information at the following link:
Changes to the rules for call-off stock arrangements between the UK and EU member states


Posted Wed, 09 Dec 2020 10:49:00 GMT by md vera
Thank you for your reply. I understand however that the linked document will not apply after 1st Jan. Once the transition year is over, when the EU goods are supplied to the customer in the UK we will not longer be able to treat it as an intra-community supply of the goods ? And when goods are sent from the EU to the UK customer to be stored as call-off stock, they will have to be treated as an straightforward export to a third country? Please advise.
Posted Tue, 15 Dec 2020 17:36:03 GMT by Jonathan Grogan
I too have been trying to clarify what the position will be after 1/1/21. As far as I can tell, the concept of call-off stock will become irrelevant and the movement will be treated as imports. My guess is that the supplier as owner of the goods on arrival will have to pay the import tax and therefore register for UK VAT to recover this and make a UK sale to the customer, but I have found no clear confirmation of this. The document referred to above is not relevant to the post 1/1/20 position, (unless it is suddenly re-adopted going forward).
Posted Thu, 07 Jan 2021 12:38:28 GMT by HMRC Admin 2

We confirm that the EU call-off stock arrangements will end on 31 December 2020.
Any business that imports goods into the UK following the end of the transition period must be registered for UK VAT to make a domestic supply, and to be able to recover any VAT.   

From 1 January 2021, if your business is registered for VAT in the UK, you’ll be able to account for import VAT on your VAT Return for goods you import into:   
  • Great Britain (England, Scotland and Wales) from anywhere outside the UK  
  • Northern Ireland from outside the UK and EU  
From 1 Jan 2021, UK VAT registered businesses that currently import goods from anywhere in the world will be able to use PVA. This means that in most cases these businesses will be able to simultaneously declare and recover import VAT on their VAT returns (as they do now in respect of imports of goods, known as ‘acquisitions’, from EU countries), rather than paying import VAT at, or soon after, the time that the goods arrive at the UK border.  

Goods already in GB at the end of the Transition Period will continue to be subject to the current call-off stocks and consignment rules in place. These will continue to apply until the stock is called off/purchased within 12 months of the end of the transition period, or leaves GB.

Thank you.

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