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 Upper Tribunal Confirms Right to Output VAT Adjustment for NHS Pricing Scheme Payments (Boehringer)
- Thames Freeport Gains New Customs Site Designation
- VAT Refund Claims for Great British Nuclear Projects
- Can UK Charities Reclaim VAT? Eligibility, Exemptions, and Recovery Guide
- Legal Ways to Reduce or Defer Import VAT on Goods in the UK: A Business Guide
