23A Call-off stock arrangements.

(1) This section applies to call-off stock arrangements which meet all of the following conditions:

(a) goods are dispatched or transported by a taxable person, or by a third party acting on his or her behalf, to the State from another Member State, with a view to the goods being supplied in the State, at a later stage and after arrival, to an accountable person;

(b) the accountable person is entitled to take ownership of the goods in accordance with an existing agreement with the taxable person;

(c) the taxable person is not established in the State and does not have a fixed establishment in the State;

(d) the accountable person is registered in accordance with section 65;

(e) the identity and registration number of the accountable person are known to the taxable person at the time when the dispatch or transport of the goods begins;

(f) the taxable person fulfils the requirements of Article 17a(2)(d) of the VAT Directive in the other Member State.

(2) Subject to subsections (3) to (7), where a taxable person transfers goods forming part of his or her business assets to an accountable person in the State under call-off stock arrangements to which this section applies, the transfer of such goods shall not be treated as a supply of goods for consideration.

(3) Where all of the conditions set out in subsection (1) are met, and provided that the transfer to the accountable person referred to in subsection (1)(a) of the right to dispose of the goods as owner occurs within the period of 12 months after the arrival of the goods in the State, then, at the time of the transfer of that right -

(a) a supply of goods in accordance with Article 138(1) of the VAT Directive shall be deemed to be made by the taxable person referred to in subsection (1)(a) in the other Member State, and

(b) an intra-Community acquisition of the goods shall be deemed to be made by the accountable person to whom the goods are supplied in the State.

(4) Where -

(a) within the period referred to in subsection (3), the goods have not been supplied to the accountable person referred to in subsection (1)(a) or a person substituted for that accountable person in accordance with subsection (6), and

(b) none of the circumstances referred to in subsection (7) have occurred, a supply of goods shall be deemed to take place on the day following the expiry of the period referred to in subsection (3).

(5) No supply of goods shall be deemed to take place where -

(a) within the period referred to in subsection (3), the right to dispose of the goods has not been transferred and the goods are returned to the Member State from which they were dispatched or transported, and

(b) the taxable person records the return of the goods in the register provided for in Article 243(3) of the VAT Directive.

(6) Where, within the period referred to in subsection (3), the accountable person referred to in subsection (1)(a) is substituted by another accountable person, no supply of goods shall be deemed to take place at the time of the substitution, provided that -

(a) all other applicable conditions set out in subsection (1) are met, and

(b) the taxable person records the substitution in the register provided for in Article 243(3) of the VAT Directive.

(7) (a) Subject to paragraphs (b) to (d), where, within the period referred to in subsection (3), any of the conditions set out in subsections (1) and (6) cease to be fulfilled, a supply of goods shall be deemed to take place at the time that the relevant condition is no longer fulfilled.

(b) If the goods are supplied to a person other than the accountable person referred to in subsection (1)(a) or a person substituted for that accountable person in accordance with subsection (6), it shall be deemed that the conditions set out in subsections (1) and (6) cease to be fulfilled immediately before such supply.

(c) If the goods are dispatched or transported to a country other than the Member State from which they were initially moved, it shall be deemed that the conditions set out in subsections (1) and (6) cease to be fulfilled immediately before such dispatch or transport starts.

(d) In the event of the destruction, loss or theft of the goods, it shall be deemed that the conditions set out in subsections (1) and (6) cease to be fulfilled on the date that the goods were actually removed or destroyed, or if it is impossible to determine that date, the date on which the goods were found to be destroyed or missing.