Replacement of the initial recipient of the transferred goods

The new regulation allows the replacement of the initial recipient by another business or professional, within the period of twelve months following the arrival of the goods in the Member State of destination, provided that the following conditions are met:

• That the seller includes the replacement in the record book of certain intra-Community operations and in the summary declaration of intra-Community operations.

• That the other conditions provided for in section " B) Concept of agreement for the sale of goods on consignment " are met (in particular, the existence of an agreement for the sale of goods on consignment between the seller and the substitute).

Where, within twelve months of the arrival of the goods in the Member State of destination under a consignment sale agreement, the substitute acquires the power to dispose of the goods, it shall be deemed that a supply of goods has taken place in the territory of application of the Tax to which the exemption provided for in Article 25 of the LIVA will apply.

From the other perspective, in the case of goods transferred from another Member State to the territory of application of the Tax within the framework of an agreement for the sale of goods on consignment, when within the period of twelve months following the arrival of the goods to said territory within the framework of an agreement for the sale of goods on consignment, the substitute acquires the power of disposal of the goods, it will be understood that in the territory of application of the Tax an intra-Community acquisition of goods is made.

The replacement must be included in the summary declaration of intra-Community operations and in the record book of certain intra-Community operations.