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
Click on the logo to visit the website
Latest Posts in "European Union"
- Blog: Four tax points, one invoice: how C-167/26 RX challenges well-accepted business processes
- EU Customs Reform: Data Hub, Trusted Traders and New Import Models
- Flashback on ECJ Cases C-409/98 (Mirror Group) – Tenant inducements are not exempt property letting
- Roadtrip through ECJ Cases – Focus on Place of Supply of Intra-Community Acquisitions – ”Triangulation” (Art. 42)
- Flashback on ECJ Cases C-415/98 (Bakcsi) – Asset allocation determines VAT treatment of a later sale
