Commentary

V7.261 Triangulation

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.261 Triangulation

Part V7 Tax planning | Commentary

V7.261 Triangulation

Triangulation is the term given to the situation where goods are delivered directly by a supplier (UK based) to his customer's customer – where the customer and his customer are both located in different EU countries outside of the UK.

In such circumstances, both the UK supplier and his customer may zero-rate their supplies (assuming all parties are registered for VAT). See Example 4 for an illustration of this situation.

Example 4

Jeff is VAT registered in the UK and has received an order to supply goods to a Spanish customer. However, the Spanish customer is reselling the goods in question

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