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An aeronautical company requested clarification on when VAT should accrue in a consignment sale where legal ownership only transfers upon consumption of parts, but the risks are borne by the customer. The DGT ruled that accrual occurs when the parts are made available to the customer.
This ruling clarifies the timing of VAT accrual in consignment arrangements, establishing that making goods available to a customer who bears the risks and costs triggers the tax liability, regardless of when legal title passes.
The tax team reviews your specific situation.
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