A “call-off stock” refers to a situation where goods owned by a non-resident supplier are sent to the customer’s country and stored there. Typically, these stocks are stored in the customer’s warehouse or facility, allowing the customer to have access to and withdraw supplies as needed. The act of withdrawing the stocks signifies the transfer of ownership of the goods.
Read more about Reverse Charge and “Call-off stock” in Estonia in our comprehensive guide below.
Previously, before the simplification, the call-off stock scheme required the supplier to be VAT registered in Estonia. This allowed the transfer of goods to the warehouse to be treated as a transfer of the supplier’s own goods, which would then be reported as Intra-community Transaction.
Since January 2020, several EU Member States have implemented a simplification of the call-off stock requirements. As a result of this simplification, the previous registration requirement for EU member states is no longer applicable. Therefore, the supplier is not required to be VAT registered in Estonia in order to report the transfer as intra-community transactions.
The transfer of goods to the customer’s facility is no longer treated as a taxable event. However, the subsequent transaction, which occurs when the goods are needed and supplied to the customer, is considered a zero-rated taxable transaction. This transaction is categorized as a “direct” intra-community transaction. The supplier is responsible for reporting the Intra-Community Supply of Goods at a zero tax rate, while the customer records it as an Intra-Community Acquisition of Goods.
The transaction will be treated as “Quick Fixes” or Simplified Call-Off Stock when the following requirements are met:
Both the supplier and the receiver of goods must maintain a register with specified information. This is mandated by Article 5a of EU Implementing Regulation 282/2011.
It is mandated that the supplier’s register must contain the following:
On the other hand, the receiver’s register must contain the following:
In the context of VAT, the term “import” pertains to a transaction in which goods are procured from a jurisdiction outside the EU VAT area and moved into a Member State, such as Estonia, either directly or via another Member State. As a general rule, imports of goods and inbound services are subject to Estonian VAT.
Import VAT is imposed by Customs on items imported from non-EU countries. The taxable value of the imported goods includes the customs value based on the Union Customs Code and all applicable import duties. This value determined by customs legislation may be subject to adjustments. Additionally, any transport costs incurred up to the first destination within the territory of Estonia, which may not be included in the customs value, are also considered part of the taxable value.
The time of supply for imported goods is when the goods are cleared from customs. In order to deduct input tax, a customs declaration supporting the imported goods must be provided.
The term “import of goods” generally refers to several scenarios, including:
For Estonian VAT purposes, certain supplies are relieved from the import VAT. Examples of these are the following:
Last Updated: 01/11/2023
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