VATNIEU5240 - Triangulation: examples
Introduction
The following examples illustrate the impact of the simplification rules in situations involving UK(XI) participants. It is assumed that the intermediate supplier in each case has quoted a VAT registration number in the member state implied by its title - for example French Co = French VAT registration number.
UK business as the first supplier
Use this link to view Triangulation examples 1 diagram
In these circumstances
- French Co, as the intermediate supplier, will quote its French VAT number to UK(XI) Co to allow the supply of goods to be zero rated in Northern Ireland subject to the normal rules
- under the simplified procedure German Co will account for VAT due on French Co’s supply in Germany as a reverse charge
- as a result French Co will not be required to register in the UK or Germany provided they are not making other supplies in either member state.
UK(XI) Co is not required to take any further special action in respect of the supply.
UK(XI) business as the intermediate supplier
Use this link to view Triangulation examples 2 diagram
In these circumstances
• UK(XI) Co, as the intermediate supplier, will quote their UK VAT number + XI indicator to French Co to allow the supply of goods to be zero-rated in France
• under the simplified procedure German Co will account for VAT due on UK(XI) Co’s supply in Germany as a reverse charge
• as a result UK(XI) Co will not be required to register for VAT in France or Germany, provided they are not making any other supplies in either member state.
UK(XI) Co will be required to invoice German Co and include the supply on their EC sales list as described at VATNIEU5235. They might also wish to check with the German tax authorities whether they have any further obligations under the German arrangements. Contact details can be found at VATNIEU1100.
UK business as the final customer
Use this link to view Triangulation examples 3 diagram
In these circumstances
- German Co, as intermediate supplier, will quote their German VAT number to French Co to enable the supply of goods to be zero-rated in France
- under the simplified procedure UK(XI) Co will account for VAT due on German Co’s supply in Northern Ireland as a reverse charge
- as a result German Co will not be required to register for VAT in France or the UK, provided they are not making any other supplies in either member state.
UK(XI) Co will receive a copy of German Co’s NETP notification and an invoice from German Co indicating adoption of the simplification arrangements (see VATNIEU5230).