Dutch policy amended: intermediary obliged to state ‘reverse charge’ on invoice issued to final recipient to apply simplified triangulation

• The Dutch Policy Notice on Administrative, Billing and Other Obligations has been updated by the Secretary of Finance to reflect a recent CJEU judgment regarding the use of a simplified triangular scheme for VAT obligations.
• The updated policy requires intermediaries to state “Reverse charge” on their invoices instead of “intra-Community supply” when applying the simplified triangulation scheme.
• This change is based on the CJEU ruling that the intermediary can only apply the simplified triangulation scheme if the invoice issued to the final recipient states that the reverse charge mechanism applies.
• Failure to include the correct reference on the invoice can result in VAT compliance issues and liabilities in both the Member State of the VAT number used for the transaction and the Member State of arrival of the goods.

Source Deloitte

See also

• C-247/21 (Luxury Trust Automobil) – Judgment – Mandatory Invoice requirements for triangulation which can not be corrected later
• Roadtrip through ECJ Cases: Place of Supply of Intra-Community Acquisitions – ”Triangulation” (Art. 42)