A call-off stock situation between a Member State and the United Kingdom , started before the end of 2020, can in principle continue during a period of 12 months, so as a maximum up until the end of 2021.
According to Article 51(1) of the Withdrawal Agreement2, the VAT Directive shall apply in respect of goods dispatched or transported from the territory of the United Kingdom to the territory of a Member State, and vice versa, provided that the dispatch or transport started before the end of the transition period and ended thereafter. Furthermore, according to Article 51(2) of the Withdrawal Agreement, the taxable person’s rights and obligations under EU VAT law continue to apply where the transaction between the United Kingdom and the EU took place before the end of the transition period.
In WORKING PAPER NO 998 the VAT Committee pronounces on certain questions addressed by a Member State on the VAT implications when goods in the abovementioned situations are returned or sold after 1 January 2021.
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