Intra-Community Triangular Transaction

By Ulrich Gehrke and Vanessa Szymik, Gehrke econ Group

The Intra-Community triangular transaction is basically a transfer of ownership of goods from a first supplier to a last customer involving at least one intermediary supplier. To promote trade within the EU, the harmonised VAT system minimises administration requirements for this kind of trade.

To benefit from the simplifications, all parties involved have to be entrepreneurs for VAT purposes and registered for VAT in different member states of the EU.

Moreover, the goods must be transported directly by the first or the intermediary supplier from the member state of the first supplier to the member state of the last customer. Furthermore, the intermediary supplier must issue an invoice that does not show VAT, but indicates “Intra- Community triangular transaction”, in addition to the normal invoice information required by law.

The simplification essentially means that the intermediary supplier is not obligated to register for VAT purposes in the member state of the first supplier or the last customer. Filing requirements in VAT declarations and EC sales lists may apply.

However, the last customer must calculate local VAT based on the net amount mentioned in the invoice and must indicate this in their VAT declaration. In Germany, it is usually possible to set off the VAT calculated as input VAT regarding the regulations in § 15 UStG (German VAT Act).


Ulrich Gehrke

Ulrich Gehrke

GGI member firm
Gehrke econ Group
Auditing & Accounting, Tax, Law Firm Services, Advisory, Corporate Finance
Hanover, Isernhagen, Germany
T: +49 511 700 50 600
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: gehrke-econ.de

Gehrke econ Group offers tax consulting, auditing, legal advice, and business consulting from a single source. It is owner-managed and advises medium-size companies at eye-level. Two hundred employees carry out interdisciplinary consulting projects specialised on the economic sectors of automotive, real estate, food, textile, and health care.

Ulrich Gehrke is one of the Managing Partners. He has more than 30 years’ experience in anticipated inheritance, asset planning and M&A.
Vanessa Szymik

Vanessa Szymik

GGI member firm
Gehrke econ Group
Auditing & Accounting, Tax, Law Firm Services, Advisory, Corporate Finance
Hanover, Isernhagen, Germany
T: +49 511 700 50 600
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: gehrke-econ.de

Vanessa Szymik is a member of a team specialised in the optimisation of personal taxes.


Published: Indirect Taxes Newsletter, No. 09 Autumn 2019 l Photo: marcinjozwiak - stock.adobe.com

GGI Logo 70x50px

GGI Geneva Group
International AG

Schaffhauserstrasse 550
P.O. Box 286
8052 Zurich
Switzerland

Contact

T: +41 44 2561818
F: +41 44 2561811
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.ggi.com