Extension of Single VAT Registration OSS enables withdrawal from 2025 of special VAT scheme for stocks held in other EU member state with customers
The VAT in the Digital Age reforms package’s Single VAT Registration pillar includes extending the use of the One-Stop-Shop OSS VAT return to movements of own goods across EU borders to business customer’s premises for their future use – ‘call-off stock‘. The current call-off stock arrangements will no longer be required as the new 2025 OSS special scheme for transfers of own goods is comprehensive and encompasses cross- border movements of goods that are currently covered by call-off stock arrangements.
No new transfers into call-off stock VAT arrangements may be made after 31 December 2024. Those goods sent prior to the date may still benefit from the call-off stock simplification until 31 December 2025.
From January 2025, businesses will report new movements of goods to be used in such call-off stock arrangements via their OSS return.
How call-off stock works
Call-off stock are goods sent sent by a business in one EU state 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 categorised as call-cff 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, and there is nil VAT charged. The customer only has to register the sale as an acquisition in its local VAT return.
2020 Quick Fixes to call-off stock
In January 2020, harmonisation for the rules of call-off stock supplies were introduced as part of the ‘four quick fixes‘ to EU VAT. and non-resident suppliers of goods avoiding the need to VAT register when they place goods on use or return under their customer’s control in another EU state. Only when the customer takes the goods out of the stock, the supplier is deemed to perform a direct intra-Community supply of goods to the customer.
VATCalc bridges the VAT in the Digital Age reforms
VATCalc’s single tax engine and returns reporting application is able to determine the requirements to report any call-off stocks vis the new OSS special scheme, and produce a draft return. This means you are only working with a single interface and integration, limiting costs and data reconciliations.
Contact us to learn more about how VATCalc will get your ready for VAT in the Digital Age.
EU VAT in the Digital Age reforms
| EU VAT in the Digital Age | |
| 3 reforms to improve efficiency of VAT for all and reduce fraud | |
| 1. Single VAT registration in the EU; extension of OSS to B2C own stock movements | 2025 (?): Following the 1 July 2021 introduction of the One Stop-Shop (OSS), extended to cover movement of own stocks prior to cross-border B2C to reduce the foreign, non-resident VAT registrations & returns. Plus to movements of own stock with ending of 'call-off' stock burden |
| More details on Single VAT Registration in the EU | |
| Marketplaces deemed supplier for EU sellers | |
| EU IOSS mandated for marketplaces | |
| EU tackles misuse of IOSS numbers | |
| Quick fixes to existing e-commerce VAT rules | |
| Call-off stock VAT simplification ends | |
| Harmonisation of B2B Reverse Charge rules | |
| 2. Digital Reporting Requirements; e-invoicing | 2030 (?): Mandatory digital reporting of intra-community transactions; obligation to be able to issue and receive intra-community e-invoices; member states free to impose own e-invoicing or real-time reporting but most conform to EU e-invoice standard EN 16931 |
| Read more about EU Digital Reporting Requirements (DRR) | |
| E-invoices mandated intra-community supplies 2028 | |
| EC Sales lists replaced by Digital Reporting Requirements | |
| 2014 EU legal permissions for e-invoicing lifted | |
| 3. VAT treatment of the platform economy | 2026 (?): Travel & accommodation sharing platforms to become deemed supplier / liable to users' VAT. New definitions of the roles of providers, users and platforms to avoid double and no-taxation |
| Read more - Travel & accommodation platforms deemed suppliers for EU VAT | |
