Stock on call - 'Quick Fixes' Brexit
As of January 1, 2021, the United Kingdom is no longer part of the European Union for VAT purposes either. The Brexit therefore also has consequences for the VAT regime for stock on call.
The supplement to the 'Quick Fixes' Decree (Decree of 13 April 2021, no. 2021-3736, Government Gazette 2021, 19872) indicates which situations may occur as a result of the Brexit and how these should be dealt with. The supplement also grants a number of approvals.
The transfer by an entrepreneur of his own goods from his business to another EU member state is equated with a VAT-taxed supply under the Turnover Tax Act 1968. The entrepreneur who transfers his own goods thereby makes an intra-Community supply in the Netherlands and an intra-Community acquisition in the country of destination.
Thus, the transfer of own goods triggers a registration requirement in the destination country, unless the transfer is made under the on-demand stockpiling scheme. Does the supply meet the conditions for this arrangement? If so, there is no intra-Community supply and acquisition until the right to dispose of the goods as owner is transferred to the buyer. This purchaser then makes an intra-Community acquisition in the Member State of destination at the time of the transfer of ownership and the supplier avoids the registration requirement.
Stock on call and the Brexit
As of January 1, 2021, the United Kingdom is no longer part of the European Union for VAT purposes either. The Brexit therefore also has consequences for the arrangement for stock on call.
Application of this scheme is subject to a 12-month time limit under the Sales Tax Act 1968. Goods that have been shipped or transported from the Netherlands to the United Kingdom or vice versa under the scheme by December 31, 2020, can be delivered in or returned to the United Kingdom or the Netherlands under the scheme until December 31, 2021. In short, application of the on-demand stockpiling scheme therefore remains possible for goods transferred to the UK or the Netherlands before the Brexit and subsequently delivered or returned within 12 months.
Because of the Brexit, you will have to deal with a number of unusual VAT and customs consequences. The supplement to the 'Quick Fixes' Decree sets out the situations that may arise as a result of the Brexit and how they should be dealt with. The supplement also grants a number of approvals.
More information or advice
Do you have questions about the 'Quick Fixes' Brexit? Please contact Anne Kin, VAT advisor, on telephone number +315915125 or send Anne an e-mail.