In intra-Community triangular transactions, the final purchaser is responsible for paying tax on supplies between the second and third taxpayers. The second taxpayer is also subject to taxation in the country where the goods are located and in the country that issued their VAT identification number. Only the final purchaser is required to charge VAT, and the simplified procedure limits registration obligations for the second taxpayer. The conditions for a triangular transaction include three taxpayers from different EU countries, each registered in a different country for intra-Community transactions, and the physical transfer of goods from the first to the last taxpayer. The transport of goods must be carried out by the first or second participant in the transaction. If all conditions are met, the transaction is classified as an intra-Community trilateral transaction. Chain transactions apply regardless of the number of parties involved, but simplification for triangular transactions is only applicable to three-party chains. Company A participated in intra-Community triangular transactions by purchasing goods from a manufacturer in another EU country and selling them to a third taxpayer in a different EU country. The goods were transported directly from the manufacturer to Poland. The transport arrangements were made by the manufacturer on behalf of Company A.
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Source Eureka.mf.gov.pl
