- The European General Court ruled on whether the EU VAT triangulation simplification applies when more than three parties are involved in an intra-EU drop shipment.
- The case involved a Slovenian company buying goods from Germany and reselling to Danish customers, with the goods ultimately delivered to a fourth party in Denmark.
- The Slovenian tax authority denied the triangulation simplification, arguing it only applies to chains with two sales and that the goods must be delivered to the third party, not a fourth.
- The court considered whether the simplification applies if the intermediate trader knows the goods will be resold and whether VAT can be charged in Slovenia if the simplification is denied due to fraud or knowledge of fraud.
Source: kpmg.com
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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