As of 31 January 2021, the United Kingdom became a third country for VAT purposes, and the EU reverse charge rules for the supply of goods sent to/from the UK no longer applies. Companies instead should treat such transactions as exports or imports.
Triangular Transactions
A triangular transaction is normally characterized by a number of things. The fact that a supplier (A) established in an EU country concludes sales transaction with a business customer (B) in another EU member state but the goods are directly delivered by the first supplier (A) to the last business customer (C) in a third EU country.
The simplification of the intra-community triangular transaction aims to prevent a VAT liability for the middle entrepreneur in the supply chain and the subsequent registration obligations. In order for the EU triangular simplification rules to apply, participants must be companies registered for VAT in different EU countries.
Source Taxbackinternational
Latest Posts in "United Kingdom"
- UK Business Groups Urge Treasury to Consult on Online VAT Reform and Marketplace Liability Rules
- VAT Import One Stop Shop (IOSS) Scheme for UK Businesses and Intermediaries
- Coalition letter calling for consultation on online VAT reform
- HMRC Updates Zero-Rated VAT Guidance for UK Exports: New Rules and Evidence Requirements 2026
- VAT Liability Timing for Lycamobile’s UK Telecom Bundles: Upper Tribunal Rules on Supply Point
