VAT—Northern Ireland—triangulation [Archived]
Produced in partnership with John Fuszard of Sagars Accountants Ltd

The following Tax practice note produced in partnership with John Fuszard of Sagars Accountants Ltd provides comprehensive and up to date legal information covering:

  • VAT—Northern Ireland—triangulation [Archived]
  • Application from 1 January 2021
  • Typical triangulation transaction
  • VAT treatment without simplification
  • VAT treatment with simplification
  • Conditions
  • Procedural requirements
  • NI intermediate supplier
  • NI final customer
  • Typical triangulation examples
  • More...

VAT—Northern Ireland—triangulation [Archived]

ARCHIVED: This Practice Note has been archived and is not maintained.

This Practice Note is concerned with VAT as it applies to the movement of goods between Northern Ireland (NI) and the EU from 1 January 2021 (and as it applied to all VAT-registered businesses in the UK on and before 31 December 2020).

Triangulation is an EU-based VAT simplification measure that was introduced to reduce the requirement for EU businesses to register for VAT in other EU Member States.

Triangulation refers to the situation in which there is a supply of goods along a chain of three parties, but the goods are physically delivered from the first party in the chain directly to the last. Each of the three parties must be established, and VAT registered, in a different EU Member State.

Even though the goods only move once, there are two supplies: from the original supplier to the intermediate supplier, and from the intermediate supplier to the final customer.

Triangulation should not be confused with some other VAT rules that are relevant in situations involving three parties:

  1. tripartite supplies in which a third party provides consideration (exemplified by the Redrow case, albeit that case concerned the supply of services)—in a third party consideration case there is one main supply, say from A to C, but B provides all or part of the consideration for that

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