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Utilization of the Simplification Rule for Triangular Transactions in Subsequent Issuance of Correct Invoices

  • The topic of triangular transactions is a recurring issue in VAT audits.
  • The Austrian Federal Finance Court (BFG) has made several interesting statements regarding invoicing and correction of triangular transactions.
  • Austrian businesses must meet certain requirements to use the simplification rule for triangular transactions.
  • In practice, businesses often issue invoices without VAT or with incorrect information, which may not allow for retroactive application of the simplification rule.
  • If retroactive correction is not possible, failed triangular transactions may need to be rectified through registration and declaration of sales in the destination country.
  • The BFG has stated that the reference to “tax liability of the recipient” must be included on the invoice, but the exact wording is subject to strict interpretation.
  • The Austrian VAT Act also requires a reference to the existence of an intra-community triangular transaction.
  • The BFG’s interpretation suggests that the wording “Intra-community triangular transaction
  • tax liability of the recipient” may be necessary on the invoice.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


VAT news
VAT news