The Council of Europe's VAT Directive, known as ViDA as a package, will introduce a new optional regime from 1 July 2028: the transfer of own goods scheme. This allows a company to move its warehouse or production goods from one EU member state to another without having to register for VAT in the destination country. For example, if a company in Estonia, Latvia or Lithuania sends 1,200 euros worth of goods to a Polish fulfilment warehouse, this is currently treated as two separate transactions, usually accompanied by a local registration obligation. ViDA Directive will convert this movement into a single monthly report from July 1, 2028 under your home country VAT number, provided that the goods are fully deductible and the movement falls within the scheme.

ViDA's own product scheme in the light of one example

Imagine that your e-commerce company registered in Tallinn sends 1200 euros worth of products to a fulfillment warehouse in Poland to be closer to your customers. Today, this means that you have to register as a VAT payer in Poland and file local declarations there. From 1 July 2028, such an internal movement of goods will be considered ViDA Directive According to the new Section 5, to transfer your goods: you declare it in one monthly report under your home country VAT number. The Polish-side turnover is tax-free because it is not a sale to anyone, but a movement of your own assets.

Who is the scheme suitable for and what is excluded?

The scheme only applies to goods that have a full right of deduction in the country of destination. If the right is partial or absent, the movement falls outside the scheme and still requires normal treatment, such as directive specifies. The law does not stipulate a monetary threshold or a minimum turnover: the scheme is suitable for a micro-enterprise on exactly the same basis as for a large manufacturer. Once registered, you must apply it to all your eligible transfers, not by country or shipment. And an important difference: the scheme covers the movement of your own goods, not sales to a customer. If the goods go directly to a buyer in another Member State, the usual distance selling or B2B transaction rules apply.

What will change on July 1, 2028?

Your Member State of identification will generally remain your country of incorporation. ViDA Directive According to the scheme, you use the same home country VAT number that you already use, and if you are already in the Union OSS scheme, the country of registration remains the same. The corresponding intra-Community acquisition in the destination country is tax-free and does not in itself trigger a registration obligation there. This is precisely what eliminates today's double reporting. Text of the directive states that this special scheme applies to all transfers of goods made by a taxable person registered for this special scheme - in essence, it obliges you to apply the scheme consistently if you have registered for it, rather than deciding on a case-by-case basis whether you still need a local VAT number.

How do registration, monthly reports, and accounting work, and how can you build the process today?

If you register before the first transfer, coverage begins on the first day of the following calendar month; if the first transfer occurs earlier, coverage can be effective from that transaction if you notify the country of registration by the 10th of the following month. This is how it is stipulated directive. The report is electronic and monthly, also submitted as a zero report if no transfers took place, with a deadline of the last day of the month following the reporting month. You show the total amount excluding VAT by country to which the goods are going and, if necessary, the country from which the goods were dispatched if it is different from your home country. You correct any errors in a later report within three years of the original deadline. You keep the records, which must be detailed enough for the tax authorities of the country of origin, destination and registration to be able to check the report, electronically for 10 years from 31 December of the year of the transfer.

What pitfalls lurk in local title transfer, local sales, and VAT refunds?

New call-off stock agreements can be entered into until 30 June 2028; after that, no new ones will commence, but previously entered into agreements will continue to apply on their terms, including the 12-month ownership transfer restriction, until Article 17a will expire in full on 30 June 2029. Cases requiring local registration will not disappear completely: for example Supplies of goods from Cyprus to Cyprus and from Bulgaria to Bulgaria must be declared in the local VAT return of Cyprus or Bulgaria respectively, as they are not intra-Community distance sales.. And important: you cannot deduct input VAT paid in the destination country through your goods declaration. To do this, you use the normal refund procedure, unless you are registered in the destination country anyway for other activities, in which case the deduction is made through that local declaration.

Baltic Company Action Plan 2026–2028

  • Map all cross-border movements of your goods: to the warehouse, to production, to the exhibition, both shipping and return.
  • For each movement, mark the country of origin and destination and the status of the right to deduct, as this determines whether it falls under the scheme at all.
  • Review your warehouse and marketplace agreements. Check if they require your local VAT number, which the scheme may no longer require in the future.
  • Test your accounting or ERP software: can it distinguish your merchandise transfers from sales and generate a report by country?
  • Please wait patiently for instructions from national portals before deleting existing foreign registrations. Commission Implementing Regulation (EU) 2026/1869, which incorporates the scheme into the administrative cooperation system, will enter into force on 1 January 2027 for registration data and on 1 July 2028 for the main rules.
  • Follow the Commission updated OSS guidelines, which were published on July 24, 2026 and describe the specifications that will come into effect as early as 2027.

FAQ

When will ViDA's own goods transfer scheme come into effect?

The scheme will come into effect from 1 July 2028. It will allow a company to move its goods from one EU member state to another without being registered as a VAT payer in the country of destination.

Who is ViDA's own goods scheme suitable for?

The scheme is suitable for all companies that export their goods to another EU member state, where the goods have a full right of deduction. There is no monetary limit or minimum turnover threshold.

How does registration and reporting work in ViDA's own goods scheme?

Registration takes place before the first transfer. The report is electronic and monthly, submitted under the VAT number of the home country. The deadline for the report is the last day of the month following the reporting month.

What happens to call-off stock agreements after 2028?

New call-off stock agreements can be concluded until June 30, 2028. Previously concluded agreements will remain valid until June 30, 2029, when Article 17a will expire.