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EU VAT triangulation allows a middle business (Party B) to avoid VAT registration in the customer’s country by meeting strict criteria, simplifying cross-border compliance among three VAT-registered EU-based trading partners.
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Under triangulation, goods move directly from supplier (Party A) to customer (Party C), with Party B invoicing C using reverse charge and legal references, ensuring VAT neutrality if C fully deducts input tax.
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The simplification only applies when all three businesses are in different EU countries, VAT-registered, and the intermediary (Party B) isn’t VAT-registered in the shipping or destination country, with proper invoicing and reporting required.
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UK businesses can no longer access EU triangulation unless registered in an EU country, enabling VAT efficiency for UK intermediaries handling EU goods flows without needing destination-country VAT registration.
Source: vatit.com
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