Belgian consignment and call-off stock
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 of stock simplification (no difference between consignment and call of stock in Belgian law) for intra-Community trade within the EU. The conditions for this simplification to apply are:
- The stock must be kept under control of the consignee either in its own premises or a warehouse designated by him
- Separate VAT books are required for all movements under the consignment stock simplification
- The consignor is not established nor VAT registered in Belgium and the consignee is a taxable person with a Belgian VAT number
- There is no time limit in which the goods can stay in consignment
- An intra-Community acquisition is reported by the consignee at the time the goods arrive to Belgium. At that time, a pro-forma invoice must be issued by the consignor making reference to the notice issued by the authorities about EU consignment stock
- Regarding VAT reporting obligations, the consignor reports the sale in the ECSL of its home country. The consignee reports an intra-Community acquisition in Belgium followed by a domestic sale to the final client
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.