Non-compliance with requirements

This section covers all contingencies affecting assets transferred under a consignment sale agreement, occurring within 12 months of the date of arrival and which do not fall under any of the above.

Where, within twelve months of the arrival of the goods in the Member State of destination under a consignment sale agreement, the conditions listed under "B) Concept of consignment sale agreement" are not fulfilled, a transaction treated as a supply of goods for consideration within the territory of application of the tax shall be deemed to have taken place.

In the case of goods transferred from another Member State to the territory of application of the tax under a consignment sale agreement, where, within 12 months of the arrival of the goods in that territory under a consignment sale agreement, the requirements listed under "B) Concept of consignment sale agreement" are not met, there shall be an intra-Community acquisition of goods in the territory of application of the tax.

The termination of the consignment agreement between the seller and the initial consignee or substitute consignee is an example to which this paragraph would apply.