In the cross-border movement of goods, certain VAT regulations are sometimes economically disadvantageous. This applies, for example, to the intra-Community transfer to a warehouse abroad, because here – although the goods from the warehouse have not yet been sold – there is already a sales taxable transaction. By regulating the so-called consignment camp in § 6b UStG, the legislature takes these practical problems into account.
1st problem: VAT liability without transaction
International trading companies usually have locations, primarily warehouses, in several EU Member States. If, for example, goods are to be sold to Austrian customers, the German entrepreneur first transports the goods across the border to the Austrian establishment. From this, the final sale to the customer takes place, as a result of which the company receives the agreed purchase price.
Without a special regulation on the consignment camp, the following applies:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.