TRIANGULATION. 2 PLACE OF SUPPLY OF GOODS 3 Reminder : place of supply of goods MS 1MS 2 Invoice...
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Transcript of TRIANGULATION. 2 PLACE OF SUPPLY OF GOODS 3 Reminder : place of supply of goods MS 1MS 2 Invoice...
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