Call-off stock 2020: fewer obligations for the entrepreneur, more duties for their accountant?

An amendment to the Value Added Tax Act that will take effect next year is related to the sale of goods to a specific buyer from a warehouse located in a Member State. The sale of goods from a warehouse located in another Member State before the new year (2020) carried the risk of VAT liability arising in such other Member State and of the resulting additional administrative burden, but this will become less of a concern with the support of a directive. However, this simplicity calls for closer cooperation with the accountant.

As of the new year, goods can be sent to a warehouse in another Member State for a known buyer in such a manner that this will not create a tax liability for the seller in such a state if certain

conditions are met:

  • the seller does not have a permanent place of activity or location in the Member State;
  • the buyer is a VAT payer;
  • the moment when the goods will be released from the warehouse in the Member State has not     been determined;
  • the goods are removed from the warehouse within 12 months.

Practical observations about the amendment for companies:

  • the risk of registration as a VAT payer is low or non-existent;
  • less reporting in other Member States.

The accountant must know the following in relation to the new amendments:

  • the processes related to the movement of goods;
  • the rules at the time when the turnover of call-off stock occurs;
  • the planned changes to the VD report, pursuant to which the dispatch of goods and any change      concerning the dispatched goods in the meantime must be recognised in the VD report;
  • detailed accounting concerning goods regarded as call-off stock.
The accurate recognition of transaction is important upon the implementation of the simplified procedure, so the correct information must get to the accountant on time and cooperation with the client must be smooth.

Leinonen’s accountants would be pleased to support the activities of your company in Member States and Leinonen’s tax advisers are ready to answer any questions you may have about this topic or other issues related to taxation.

Recent Posts

June 28, 2023

e-Residency in Estonia – the electronic assistant to foreign entrepreneurs

Estonia can be a very attractive choice for an entrepreneur to start business. The Estonian government is very supportive of entrepreneurs, the tax system is…

Continue reading
January 11, 2023


Estonian economy has become highly competitive and it supports big international companies as well as newly established start-ups. In recent years Estonia has become the…

Continue reading
December 22, 2022


From 2018 to 2022, the principle of tax exempt income for natural persons applied uniformly – up to 6,000 euros per calendar year and up…

Continue reading