General Insights into Chain Transactions in the EU VAT Framework
Chain transactions involve multiple consecutive sales of the same goods, with the goods being transported directly from the first seller to the final buyer across borders within the European Union (EU). These transactions become complex because they involve multiple parties and various EU member states.
What is a Chain Transaction?
A chain transaction occurs when multiple parties sell the same goods, but the goods are transported only once between two EU member states.
For example:
- Company A in France sells goods to Company B in Germany.
- Company B then sells the same goods to Company C in Italy.
- The goods are transported directly from France to Italy.
Source VATit
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