VAT Database

VAT Database

Assignment of Assets

Triangular Trade

A triangular transaction is a transaction in which three businesses of different member countries are involved in the transfer of assets covering the same asset and are sent directly from the first business operator to the last business operator. A triangle is a type of chain transaction.



French manufacturers sell clothing items produced in France to Dutch retailers through German brokers. Clothing items are sent directly from a French manufacturer's warehouse to a Dutch retail store.

Rules for simplifying triangular transactions

 With the system of taxation of chain trading, even in the case of triangular transactions, intermediate business operators must fulfil VAT payment obligations in shipping or arriving countries. Simplification of triangular transactions As a legislative purpose of the rules, intermediate companies that are not ship-to countries or arrived deeply are expected to be able to fulfil VAT's obligation to declare in their member countries.


Simplification rules for triangular transactions are made up of a combination of the following plural provisions on the directive.


【42 Article

Only in member countries that issued the VAT ID number used by intermediate business companies None Exemption from acquisition within the EU

【138 items,1 item

EU non-taxable deliveries in member countries that are shipping locations

【Article 141

Tax exemption on acquisition within the EU in member countries that are destinations

【Article 197条】

Application of a reverse charge system to the transfer of assets performed by intermediate business operators   As mentioned above, it is a very complicated system and at the same time it is a system of high importance.

For this reason, it is essential to confirm the local laws in the member countries, which are shipping locations and destinations, with accurate understanding of the system itself.








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