Under a consignment stock arrangement, the supplier (consignor) places the goods at the disposal of the buyer (consignee), who purchases and ´flash sells´ the goods as soon as he finds a client.
Where consignment stock happens as part of an international trade agreement, the supplier is often required to register for VAT in the country of the customer. However, some countries allow a simplification where the supplier does not register and the customer reports an intra-Community acquisition when he retrieves the goods from the warehouse. This simplification only applies where both the supplier and customer are established in the European Union.
Belgium introduced a consignment stock and call-off stock simplification (no difference between consignment and call-off stock in Belgian law) for intra-Community trade within the EU. The conditions for this simplification to apply are:
More information is available (in Dutch and French) in the notice published by the Belgian authorities about intra-Community consignment stock and other obligations of non-established companies in Belgium.