TRIANGULATION

1
TRIANGULATION
2
PLACE OF SUPPLY OF GOODS
3
Reminder place of supply of goods

• MS 1 MS 2
• 
  

Invoice
B
A
Invoice
C
TRANSPORT IN THE RELATION B - C

Place of supply A B and B C in MS 1
A-B No transport where goods are put at the
disposal of B B-C Transport where transport
begins/Registration of B in MS 1
4
Reminder place of supply of goods

• MS 1 MS 2
• 
  

Invoice
B
A
Invoice
C
TRANSPORT IN THE RELATION A - B

Place of supply AB in MS 1
Place of supply BC in MS 2
Transport Where transport begins
No transport Where goods are placed at the
disposal of C
5
PLACE OF INTRA-COMMUNITY ACQUISITION
6
Reminder place of intra-Community acquisition
of goods

• Place where transport ends

7
Reminder place of intra-Community acquisition
of goods

• Member State VAT Identification Number
• Security net

8
TRIANGULATION DEFINITION
9
Triangulation (ABC) - Definition

MS 2 B
Sale 1
Sale 2
MS 1 A
MS 3 C
Transport
3 taxable persons (ABC) in three different
Members States 2 sales A B and B C 1
transport directly from A to C
10
TRANSPORT BETWEEN B AND C
11
Triangulation - Transport between B and C - No
simplification possible

MS 2 B
Sale 1
Sale 2
MS 1 A
MS 3 C
Transport between B - C
Supply AB (no transport) place where goods are
put at disposal of B (MS 1) local supply
VAT Supply BC (transport) place where transport
begins (MS 1) IC supply exempt from VAT by B in
MS 1 (B must register for VAT in MS 1) C is doing
an intra-Community acquisition in MS 3
12
TRANSPORT BETWEEN A AND B NO SIMPLIFICATION
13
Triangulation - Transport between A and B

MS 2 B
Sale 1
Sale 2
MS 1 A
MS 3 C
Transport between A - B
Supply AB (transport) place where transport
begins (MS 1) IC supply exempt from VAT by A in
MS 1 Supply BC (no transport) place where goods
are put at disposal of C (MS 3) B is doing an
intra-Community acquisition in MS 3 followed by a
local supply to C in MS 3 (VAT registration of B
in MS 3)
14
TRANSPORT BETWEEN A AND B SIMPLIFICATION MALTA
IS MS 1
15
Triangulation - Transport between A and B -
Simplification

MS 2 B
Sale 1
Sale 2
MALTA A
MS 3 C
Transport between A - B
Intra-Community supply made by A in Malta is
exempt from VAT if conditions are fulfilled B is
communicating a valid VAT number of another
Member State (MS 2) to A B is reported as the
purchaser of the goods in the recapitulative
statement of A, under the VAT number of B in MS 2
16
TRANSPORT BETWEEN A AND B SIMPLIFICATION MALTA
IS MS 2
17
Triangulation - Transport between A and B -
Simplification

MALTA B
Sale 1
Sale 2
MS 1 A
MS 3 C
Transport between A - B
Item 14(1) Third Schedule
B communicates to A his Maltese VAT number
application of the security net Normally
intra-Community acquisition by B in Malta but
18
Triangulation - Transport between A and B -
Simplification

MALTA B
Sale 1
Sale 2
MS 1 A
MS 3 C
Transport between A - B
Item 14(2) Third Schedule

• ICA made by B in Malta is deemed to have been
  subject to VAT in MS 3 if B proves it is made for
  the purpose of a subsequent supply in MS 3 2
  conditions
• C is reported as the person liable to pay VAT on
  the local supply to C in MS 3
• Code T must be reported in the recapitulative
  statement for the supply made to C
• B reports this sale to C in the box IC supply
  exempt in his VAT return

19
TRANSPORT BETWEEN A AND B SIMPLIFICATION MALTA
IS MS 3
20
Triangulation - Transport between A and B -
Simplification

MS 2 B
Sale 1
Sale 2
MS 1 A
MALTA C
Transport between A - B
Item 1 Fifth Schedule Part Three
Art.20(2)(a) VAT Act
ICA made by B in Malta is exempt from VAT if
conditions are fulfilled C is registered under
articles 10 or 12 and is reported as liable to
pay VAT on the subsequent local supply made by B
in Malta C must report this purchase in the box
ICA of his VAT return