Triangular operations

What it is ?

• It is a transaction that involves 3 taxable persons based in 2 or 3 different EU Member States.

Fiscal regime of triangular operations

The transaction is exempt from VAT if the following conditions are fulfilled :

3 taxable persons based in 3 different EU Member States are required : this transaction is called a "simplified triangular operation".

If this condition is not fulfilled, the transaction becomes taxable therefore requesting one of the entities involved to be registered for VAT locally.

Example : 3 taxable persons in 2 EU Member States or 2 taxable persons and 1 entity established outside of the EU.

For this type of transaction to happen, goods must be shipped from one country to another. If the shipment cannot be proved by either a Customs or a Transport document, the supplier can face a tax audit and can be requested to pay VAT.

If you want more information of triangular operations, please do not hesitate to contact ASD Group.