VAT Guides Compliance & Technical

Triangulation

As part of simplification measures introduced when the EU created the Single Market, a special rule was introduced for the treatment of so-called triangular transactions. Triangulation occurs when there are three companies involved in successive transactions, with a single movement of goods, and they are VAT registered in three different EU member states.

In such a scenario, the standard EU VAT legislation would require that at least two of the three parties be VAT registered in the same country for the transactions to be compliant. However a simplification was introduced in all EU member states so that the second VAT registration can be avoided if various conditions are met and strict reporting requirements are adhered to.

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