- 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.
Source: 1stopvat.com
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.
