Non-compliance with requirements

This section covers all contingencies affecting the assets transferred under a sale of goods agreement, occurring within twelve months of the arrival date and not falling within any of the above assumptions.

Where, within twelve months of the arrival of the goods in the Member State of destination under a consignment sale agreement, the requirements listed in section " B) Concept of consignment sale agreement " are not met, an operation equivalent to a supply of goods for consideration will occur in the territory of application of the Tax.

In the case of goods transferred from another Member State to the territory of application of the Tax within the framework of an agreement for the sale of goods on consignment, when within twelve months following the arrival of the goods in said territory within the framework of an agreement for the sale of goods on consignment, the requirements listed in section " B) Concept of an agreement for the sale of goods on consignment " are not met, an intra-Community acquisition of goods will occur in the territory of application of the Tax.

The termination of the agreement for the sale of goods on consignment between the seller and the initial or substitute recipient is an example to which this section would apply.