Commentary

V3.609 Simplifications—triangulation/call-off stock/installed or assembled goods/chain transactions

Part V3 Supplies, acquisitions and imports

V3.609 Simplifications—triangulation/call-off stock/installed or assembled goods/chain transactions

V3.609 Simplifications—triangulation/call-off stock/installed or assembled goods/chain transactions

As the UK has left the EU, certain VAT simplifications are no longer available to businesses where the movement of goods involves Great Britain. However, if the movement of goods involves EU member states and Northern Ireland, the following simplifications will still apply:

  1.  

    •     triangulation

  2.  

    •     call-off stocks

  3.  

    •     installed or assembled goods

  4.  

    •     chain transactions

Triangulation

Triangulation occurs when there is a supply of goods involving three parties in three different EU jurisdictions (from 1 January 2021, for these purposes, Northern Ireland is regarded as if it were such a jurisdiction). In its simplest form, triangulation requires there to be a supply of goods from A to B and from B to C. However, there is only one movement of the goods from A directly to C. Without the triangulation simplification, VAT accounting would be onerous in relation to these transactions. Firstly, there would be a supply of the goods from A to B. Assuming that B is registered for VAT in the member state of arrival of the goods, B would provide A with that VAT number and there would then be an intra-Community supply by A which would be exempt from VAT in the member state of despatch (zero-rated in Northern Ireland) followed by a taxable acquisition by B of the goods in C's member state (the member state of arrival). There would then be a 'domestic' supply of the goods by B to C in the member state of arrival.

The

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