On 31 December 2019, HMRC published guidance and draft legislation to introduce simplified rules for the VAT treatment of intra – EU movements of call-off stock, allowing businesses to delay accounting for VAT until the goods are called-off. The government has confirmed that this legislation is being introduced as part of Finance Bill 2020, and will take effect from 1 January 2020 (i.e. with retroactive effect, in line with the deadline set by EU Directive 2018/1910).
The rules on UK call-off stock are expected to become redundant following the end of the transition period (i.e. 31 December 2020).
The changes to the UK legislation will be relevant to all businesses which send or receive goods cross-border between the UK and the EU in advance of them being ‘called-off’ by the customer.
The new rules are effective from 1 January 2020.
During the transition period the UK must adhere to current EU VAT requirements such as adopting the EU Quick Fixes. However the new legislation does not result in material changes to the way in which the UK currently operates call-off stock.