- An intra-community triangular transaction is intended to prevent the intermediary from having to register for VAT and file a tax return in the destination country, ensuring that VAT is only due from the final purchaser and avoiding double taxation. If such a transaction is not initially recognized, its legal consequences cannot be applied retroactively. It is unclear whether these consequences can be applied later (ex nunc) through an invoice correction, which is treated as an original invoice for VAT purposes. According to the Fiscal Court of Düsseldorf, if the failed triangular transaction is solely due to an invoicing error, the tax may be waived, so that no interest on back taxes arises even after a subsequent invoice correction.
Source: datenbank.nwb.de
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.
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