Spain consignment call-off stock VAT

A Spanish VAT registration may be required of a foreign taxable person with no Spanish local permanent establishment (local company, staff, offices etc.) when they are retaining goods in Spain for onward sale.  This would include regular Spanish VAT reporting of the intra-community arrival of the goods and subsequent sale.  However, Spain makes extensive use of the domestic VAT reverse charge option under the EU VAT Directive.

Spanish VAT stock simplification

For EU VAT compliance purposes, there are two types of stock regimes.  Below is a summary of how they are applied in Spain:

Spanish call off stock

If the vendor moves stock (but retains legal title) to a customer’s premises for them to retrieve as needed, then no Spanish VAT registration is required of the vendor.

However, the customer must be either Spanish resident (and therefore have a VAT number), or, if non-resident Spanish VAT registered too, be able to demonstrate that the sale will be reported through their Spanish VAT number.

Spanish consignment stock

Where stock is held by a vendor in a single location for multiple customers, this is known as Consignment Stock.

As for Spanish Call Off Stock, no Spanish VAT registration is required in this situation if all the customers can demonstrate a Spanish VAT number – and so the reverse charge applies.

Note, if the goods are coming from outside the EU, they are an import VAT (as opposed to an intra-community supply), and a registration may be required on this basis alone.

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