TRIANGULATION

2

PLACE OF SUPPLY OF GOODS

3

Reminder : place of supply of goods

MS 1 MS 2

Invoice

Invoice

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 BB-C = Transport = where transport begins/Registration of B in MS 1

A B

C

4

Reminder : place of supply of goods

MS 1 MS 2

Invoice

Invoice

TRANSPORT IN THE RELATION A - B

Place of supply A–B in MS 1 Place of supply B–C in MS 2

TransportWhere transport begins

No transportWhere goods are placed at the disposal of C

A B

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 2B

MS 1A

MS 3C

Sale 1 Sale 2

Transport

3 taxable persons (ABC) in three different Members States2 sales : A – B and B – C1 transport directly from A to C

10

TRANSPORT BETWEEN B AND C

11

Triangulation - Transport between B and C - No simplification possible

MS 2B

MS 1A

MS 3C

Sale 1 Sale 2

Transport between B - C

Supply A–B (no transport): place where goods are put at disposal of B (MS 1): local supply + VATSupply 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 2B

MS 1A

MS 3C

Sale 1 Sale 2

Transport between A - B

Supply A–B (transport): place where transport begins (MS 1) = IC supply exempt from VAT by A in MS 1Supply 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

SIMPLIFICATIONMALTA IS MS 1

15

Triangulation - Transport between A and B - Simplification

MS 2B

MALTAA

MS 3C

Sale 1 Sale 2

Transport between A - B

Intra-Community supply made by A in Malta is exempt from VAT if conditions are fulfilledB is communicating a valid VAT number of another Member State (MS 2) to AB 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

SIMPLIFICATIONMALTA IS MS 2

17

Triangulation - Transport between A and B - Simplification

MALTAB

MS 1A

MS 3C

Sale 1 Sale 2

Transport between A - B

B communicates to A his Maltese VAT number : application of the security netNormally intra-Community acquisition by B in Malta but…

Item 14(1) Third ScheduleItem 14(1) Third Schedule

18

Triangulation - Transport between A and B - Simplification

MALTAB

MS 1A

MS 3C

Sale 1 Sale 2

Transport between A - B

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

Item 14(2) Third ScheduleItem 14(2) Third Schedule

19

TRANSPORT BETWEEN A AND B

SIMPLIFICATIONMALTA IS MS 3

20

Triangulation - Transport between A and B - Simplification

MS 2B

MS 1A

MALTAC

Sale 1 Sale 2

Transport between A - B

ICA made by B in Malta is exempt from VAT if conditions are fulfilledC is registered under articles 10 or 12 and is reported as liable to pay VAT on the subsequent local supply made by B in MaltaC must report this purchase in the box “ICA” of his VAT return

Item 1 Fifth Schedule Part ThreeItem 1 Fifth Schedule Part ThreeArt.20(2)(a) VAT ActArt.20(2)(a) VAT Act