Consignment stock refers to the situation where a supplier transfers goods to a customer's warehouse or location, but retains ownership until the goods are consumed or sold by the customer. From a VAT perspective, the transfer of goods to the customer's warehouse is not considered a supply, and therefore, VAT is not immediately due. The customer becomes liable for VAT when they take ownership or control of the goods and use or sell them.

On the other hand, call-off stock occurs when a supplier transfers goods to a warehouse or location in Italy that is under the control of the customer. The goods remain the property of the supplier until the customer actually takes possession of the goods. For VAT purposes, the transfer to the call-off stock is generally treated as a supply, and the supplier must account for VAT accordingly. When the customer later takes ownership or control of the goods from the call-off stock, it is considered a subsequent internal transfer, and VAT is not due at that point.

It is important to note that both consignment stock and call-off stock arrangements must comply with the relevant requirements and documentation obligations set forth by the Italian tax authorities. This includes maintaining proper records, such as consignment stock agreements or call-off stock agreements, to demonstrate the legal and tax status of the goods.