Section 15 of VAT Notice 725: the single market explains the VAT treatment for certain movements of goods within the EC. This section gives information about Call-off stocks (Paragraph 15.2), Consignment stocks (Paragraph 15.3), Excise goods, such as alcohol (Paragraph 15.4) and Goods supplied on sale or return, or similar terms (Paragraph 15.6).
When transferring your own goods from one Member State to another within the same legal entity, for example between branches of the same company, this is deemed to be a supply of goods for VAT purposes and is liable to VAT in the same way as other intra-EC supplies of goods described in the notice. The supply may be zero-rated subject to the conditions in paragraph 4.3.
You will normally be liable to account for acquisition VAT in the Member State to which the goods are transferred.
You may also need to be registered for VAT in the Member State to which the goods were dispatched in order to meet your obligations to account for acquisition tax and also to account for VAT if you subsequently supply the goods there. You will also be able to use that VAT registration number to support zero-rating of the deemed supply in the UK (see paragraph 4.3).
If you are not registered for VAT in the Member State to which you transfer your own goods, you should treat the supply as a domestic supply (see paragraph 6.1). You must account for VAT on the transfer at the appropriate UK rate.
HM Revenue & Customs
Customs International Trade & Excise