Value Added Tax Act 1994 section 63

Meaning of "relevant event"

Section 63 defines the events that constitute a "relevant event" for the purposes of call-off stock arrangements, which can trigger the end of the special VAT treatment and require the supplier to account for VAT.

• A relevant event occurs when the supplier decides not to supply the goods to the customer, plans to supply them elsewhere, establishes a business presence in the destination territory, or the customer loses their VAT registration there.
• Goods being removed from the destination territory (other than to return them to the origin territory) or being destroyed, lost or stolen also count as relevant events.
• If the supplier decides not to supply the original customer but instead intends to supply a substitute customer who is VAT-registered in the destination territory, this is not treated as a relevant event, provided the supplier updates the recapitulative statement and the call-off stock register promptly.
• Where goods are destroyed, lost or stolen and the exact date cannot be determined, they are treated as destroyed, lost or stolen on the date the destruction or absence was discovered.