Comments on ECJ Case Case T-646/24: VAT Triangulation: Intra-EU Dropshipping with More Than Three Parties

The EU VAT triangulation mechanism simplifies intra-EU supply chains by allowing intermediaries to avoid VAT registration in the destination Member State when specific conditions are met.
Triangulation typically involves three parties, each VAT-registered in different EU Member States, with goods shipped directly from the original supplier to the end customer.
The European General Court (EGC) recently ruled on whether this simplification applies to supply chains involving more than three parties, specifically in a case with four parties.
The case highlighted concerns about VAT fraud when intermediaries knowingly participate in complex supply chains with shell entities.
The Court’s decision clarified that the triangulation simplification does not extend to transactions involving more than three parties.

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.