Changes to the rules for call-off stock arrangements between the UK and EU member states
Changes to EU law about the VAT rules for cross-border transactions between the UK and EU member states
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Details
These changes are enacted into UK law through a new Schedule 4B to the Value Added Tax Act 1994 and a new Regulation 22ZA to the VAT Regulations 1995 together with some consequential amendments to existing legislation.
Find out more about the Draft legislation: changes to tax rules for call off stock arrangements between the UK and EU member states.
This measure is included in the Finance Bill 2020. The legislation was given legal effect from 16 March 2020 through a resolution under the Provisional Collection of Taxes 1968. The measure applies, subject to the conditions in the legislation, in cases where goods are moved to or from an EU country on or after 1 January 2020 (the legislation therefore has a retrospective element). This means that businesses are able to take advantage of the new arrangements from 1 January 2020.
Where the new legislation was due to apply, businesses were invited to account for VAT and complete VAT returns, records and EC Sales Lists, in accordance with its provisions, from 1 January 2020. With effect from 16 March 2020, VAT accounting, returns and reporting in accordance with the new legislation, where it applies, are required in law in respect of goods moved to or from an EU country on or after 1 January 2020, and taxpayers are required to correct returns where this has not been done.
Parts of the guidance have force of law.
The provisions with the force of law which were set out in paragraph 3 of the guidance took effect on 1 January 2020, and are now contained in Notice 725.
Businesses were invited to comply with the sentences expressed to have force of law in paragraph 7 of the guidance from 1 January 2020. With effect from 16 March 2020, these requirements have the force of law in respect of goods moved to or from an EU country on or after 1 January 2020.
Further information
Find out how to report your EU sales for VAT.
More information about call off stock can be found in VAT Notice 725.
Updates to this page
Last updated 20 April 2020 + show all updates
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Pages have been amended to include a new Paragraph 10.5 on the accounting of small losses and generally updated to reflect the enactment of the legislation on 16 March 2020.
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First published.