- Introduction of simplified triangulation concept for VAT purposes under EU VAT Directive
- Simplifies compliance and trade within the EU
- Allows EU-taxable persons to reduce compliance burden significantly
- Requirements must be met to leverage simplified triangulation reporting and invoicing mechanism
- Scenario involves two EU VAT-registered taxable persons consecutively supplying same goods
- Goods transported directly from first supplier in one Member State to end customer in another Member State
- Second supplier in transaction chain can leverage simplified triangulation in destination country
- Simplified triangulation method eliminates need for second supplier to register for VAT in destination country
- Flow of transactions involves zero-rated supply from Company X to Company Y to Company W
- Reporting and invoicing obligations outlined for each step in the transaction chain.
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.