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TRIANGULATION

TRIANGULATION. PLACE OF SUPPLY OF GOODS. 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

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TRIANGULATION

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  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 A–B in MS 1 Place of supply B–C 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 A–B (no transport): place where goods are put at disposal of B (MS 1): local supply + VAT Supply B–C (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 A–B (transport): place where transport begins (MS 1) = IC supply exempt from VAT by A in MS 1 Supply B–C (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 Art.20(2)(a) VAT Act Item 1 Fifth Schedule Part Three 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

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