Germany: Consignment stocks | KPMG Global
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Germany: Consignment stocks, criteria for avoiding VAT registration

Germany: Consignment stocks

The German tax authorities historically have considered movements of goods from an EU country into a German consignment stock to be an intra-Community movement, within the trader’s own business. As a result, the foreign trader was required to register for value added tax (VAT) purposes.


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The German Ministry of Finance (BMF) has revised its position on such VAT registration, based upon recent case law from the German federal tax court (BFH). Depending on the contract’s set-up and its specific execution, there is no VAT registry obligation on part of the foreign supplier (BMF guidance of 10 October 2017).

Other recent VAT developments that may affect businesses in Germany include the following items:

  • Germany must extend the VAT exemption cost-sharing rule—CJEU judgment in Commission v. Germany, C-616/15 (21 September 2017)
  • CJEU referral: Does the trader need to pay the tax revenue in advance? (BFH decision of 21 June 2017, V R 51/16)
  • CJEU referral on the margin scheme of travel services (BFH decision of 3 August 2017, V R 60/16)


Read an October 2017 report [PDF 336 KB] prepared by the KPMG member firm in Germany

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