The article explains the EU VAT Directive’s call‑off stock simplification, which exempts the transfer of goods between Member States from VAT when a single, predetermined customer is known. It contrasts this with consignment stock, which triggers a deemed intra‑Community supply and requires VAT registration in the destination country. Practical compliance requirements such as maintaining stock registers, submitting EC Sales List reports, and potential Intrastat reporting are also outlined.
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VATIT · about 4 hours ago
In the EU, the distinction between a branch and a subsidiary determines whether intercompany services are subject to VAT. The FCE Bank decision of 2006 establishes that services supplied by a head office to its branch are outside the scope of VAT, while the Skandia and Danske Bank rulings show that VAT group membership can change this outcome.
Sni Technology · about 4 hours ago
Europe: SAP's Plants Abroad and RITA solutions let a single legal entity manage multiple VAT registrations across member states, simplifying reporting. The tools support tax code configuration, reporting by jurisdiction, and integration with ERP, but do not resolve tax determination or localisation requirements.
SimplyVAT · 2 days ago
EU VAT reforms under ViDA will overhaul e-commerce VAT rules, introducing e-invoicing, expanded deemed supplier rules and a single VAT registration.
VatCalc · 6 days ago
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VATIT · 7 days ago
The European Union has enacted its ViDA package, a comprehensive overhaul of VAT rules for the digital economy, with key deadlines set for 2028 and 2030.
Bloomberg Tax · 8 days ago
European Union: Council Regulation 2026/1743/EU amends VAT fraud rules to enhance cooperation between member states, EPPO and OLAF.
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Key Takeaways
VAT is triggered only when the customer takes ownership of the goods, not at the moment of transfer.
The supplier applies 0% VAT and the customer must account for VAT under the reverse‑charge mechanism.
The movement is treated as a deemed intra‑Community supply, requiring the supplier to register for VAT in the destination country and file periodic VAT returns.
If there are multiple potential customers or the customer is not predetermined at the time of shipment, the simplification does not apply.
Primary source
Read full article on LinkedIn by Jeyhun MammadovThis summary was published on VATfaqs.com on 19 January 2026. It relates to VAT developments in European Union. The original source is LinkedIn Article by Jeyhun Mammadov.
