Facts:

A Polish entrepreneur E4 (= last purchaser) orders a machine from his Swiss supplier E3 (=2nd purchaser). The latter in turn orders the machine from the German wholesaler E2 (=1st purchaser). Since the wholesaler E2 does not have the machine in stock, he orders it from the German manufacturer E1 (= first supplier).
The German wholesaler E2 instructs his forwarder with the pickup of the machine from the German manufacturer E1 and subsequent delivery to the Polish entrepreneur E4. The German wholesaler E2 (=intermediary operator) acts with his (German) VAT identification number and he communicates it to the German manufacturer E1 in writing in the order document at the latest until the beginning of the shipment.

Brief description of the chain transaction:

• Registration obligations:
  • The Swiss entrepreneur E3 has to obtain a VAT registration in the destination country Poland.
    
    
• "Supply 1" from E1 (Germany) to E2 (Germany)
  • Transaction without transport/dispatch assignment (§ 3 (7) UStG)
  • Taxable supply in Germany (E1)
    
    
• "Supply 2" from E2 (Germany) to E3 (Switzerland)
  • Assignment of transport or dispatch according to § 3 (6) UStG in conjunction with § 3 (6a) sentence 4 - 2nd half sentence UStG
  • VAT-exempt supply in Germany (E1)
    
    
• "Supply 3" from E3 (Switzerland) to E4 (Poland)
  • Transaction without transport/dispatch assignment (§ 3 (7) UStG)
  • Taxable supply in Poland (E4)
    
    

FAQ for this chain transaction:

• Why is the dispatch/transport assigned to the supply between E2 and E3?
  
  
• Based on which legal norm (which paragraph, which law) is the tax exemption in this example?
  What reference must the invoice contain in connection with the tax exemption?
  
  
• For which of the entrepreneurs is there a risk that they will be doubly liable for acquisition tax if they use a wrong VAT identification number (double acquisition)?
  
  
• Is there an alternative solution where the simplification rules for triangular transactions can be applied?
  
  
• Is there another alternative solution to this example (e. g. by using another VAT identification number)?
  
  
• Answer: These last two questions must be answered in the affirmative. In the chargeable part of the chain transaction calculator (from EUR 80,-/year) you will find the answers to the above questions as well as two alternative solutions (incl. sketch). That means there are a total of 3 possible solutions for this example!
  Please register using the following order button. Below the order button you will find a detailed description as well as links to freely accessible sample pages.

Paid access to the Chain Transaction Calculator (from EUR 80,-/year):

• Invoicing: Required information in the invoice in connection with a tax exemption
• Alternative examples when using a different VAT identification number
• Quick Fixes: Detailed explanation in case of shift of the exempt supply
• Detailed descriptions (from the perspective of each individual entrepreneur)
  incl. Registration obligations, VAT return, Import VAT, EC-Sales List, Intrastat
  
• Word-Files (editable)
• With a Plus- or Site licence you also get access to:
• B2C chain transactions with the notes on the new legal situation from 1.7.2021 regarding the EU-OSS and IOSS One-Stop-Shops (see sample pages Chain Transaction-4 and Chain Transaction-5)
• Personalized print version with several 100 million examples
  The desired countries can be selected from a list of 196 states!