Facts:

A German entrepreneur E3 (= last purchaser) orders a machine at his Austrian supplier E2 (=1st purchaser). Since the supplier E2 does not have the machine in stock, he orders it from the Austrian wholesaler E1 (= first supplier).
The Austrian entrepreneur E2 instructs his forwarder with the pickup of the machine from the Austrian wholesaler E1 and subsequent delivery to the German entrepreneur E3. The Austrian entrepreneur E2 (=intermediary operator) acts with his (Austrian) VAT identification number and he communicates it to the Austrian wholesaler E1 in writing in the order document at the latest until the beginning of the shipment.

Brief description of the chain transaction:

• "Supply 1" from E1 (Austria) to E2 (Austria)
  • Transaction without transport/dispatch assignment (§ 3 (7) UStG)
  • Taxable supply in Austria (E1)
    
    
• "Supply 2" from E2 (Austria) to E3 (Germany)
  • Assignment of transport or dispatch according to § 3 (6) UStG in conjunction with § 3 (6a) sentence 4 - 2nd half sentence UStG and § 3 (6a) sentence 5 UStG
  • VAT-exempt supply in Austria (E1)
  • Tax exemption pursuant to § 4 (1)(b) UStG in conjunction with § 6a UStG (intra-Community supply)
    
    
• Special feature of this chain transaction
  • Since the Austrian entrepreneur E2 acts with his Austrian VAT identification number towards the Austrian entrepreneur E1, the provision of the § 3 (6a) UStG (Article 36a (2) of the Directive 2006/112/EC) applies. As a result, the tax exempt supply shifts to the supply between E2 and E3 and the Austrian entrepreneur E2 does not have to register in the destination country Germany.
    
    

Detailed description from the perspective of the individual entrepreneurs:

From the perspective of the 1st supplier E1 (from Austria):

• Outgoing Invoice:

  • Invoicing:
    This supply is taxable in Austria (E1). The invoice must therefore be issued with 20 % Austrian VAT, stating the own (Austrian) VAT identification number.
    
    
  • VAT Return:
    Declaration of the sales transaction as a taxable (domestic) supply.
    
    

From the perspective of the 1st purchaser E2 (from Austria):

• Incoming Invoice:

  • VAT return:
    The Austrian VAT contained in the incoming invoice can be deducted as input tax and must be included in the VAT return accordingly.
    
    

• Outgoing Invoice:

  • Invoicing:
    Invoice without VAT with reference to the tax exemption (intra-Community supply) pursuant to § 4 (1)(b) UStG in conjunction with § 6a UStG (or alternatively with reference to Article 138 of the Directive 2006/112/EC) and specification of the own (Austrian) VAT identification number as well as the (German) VAT identification number of the German entrepreneur E3.
    
    
  • VAT Return:
    Declaration of the sales transaction as an intra-Community supply.
    
    
  • EC Sales List (ESL / Recapitulative statement):
    Declaration as (intra-Community) supply to the (German) VAT identification number of the German entrepreneur E3.
    
    
  • Intrastat Supplementary Declaration (Intrastat SD):
    Declaration as dispatch to Germany. Since 2022, the country of origin and the (German) VAT identification number of the German entrepreneur E3 must also be reported.
    
    

From the perspective of the last purchaser E3 (from Germany):

• Incoming Invoice:

  • VAT return:
    The incoming invoice contains no VAT and is to be included as an intra-Community acquisition in the VAT return. This means, on the one hand, that the VAT (acquisition tax) (line 24/code 89) must be paid and, on the other hand, it can be treated as input tax (line 38/code 61) on the same return.
    
    
  • Intrastat Supplementary Declaration (Intrastat SD):
    Declaration as arrival from Austria.
    
    

Notes to the chain transaction:

• The above detailed descriptions from the perspective of the entrepreneurs E1 and E2 only represent an indication of how the tax assessment would be if the German laws were to apply in Austria. National deviations from the German legislation were also not taken into account in the chain transaction sketch and the brief description!
  
  
• You can find the German version in the reihengeschaeftrechner.de.
  
  
• The assessment of this chain transaction from the Austrian perspective you can find in the reihengeschaeftrechner.at.
  
  
• Alternative A: If the Austrian entrepreneur E2 acts with a German VAT identification number towards the Austrian entrepreneur E1, the tax exempt supply shifts to the supply between E1 and E2. However, the supply from E2 to E3 is then taxable in Germany (19% German VAT).
  
  
• Alternative B: If the Austrian entrepreneur E2 acts with a VAT identification number that is not from the country in which the chain transaction begins (Austria) or ends (Germany), the simplification rules of the triangular transaction are applicable! The prerequisite for this is that the Austrian entrepreneur E2 is not resident in the destination country Germany.