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Select language / Sprache auswählen: ![]() ![]() The triangular transaction from a German perspectiveUpdate information Chain Transaction Calculator 2021: Whenever the use of a different VAT identification number allows a different assessment, you will find additional chain transaction sketches with the corresponding alternative examples in the evaluations of the Chain Transaction Calculator. In addition to the current legal situation, the examples are also available in the archive according to the old legal situation. I. e. in the archive 2020 with consideration of the temporary reduction of the VAT rate (incl. the key figures of the monthly VAT return) and in the archive 2019 according to the legal situation prior to the entry into force of the Quick-Fixes. Term Explanation:A triangular transaction is a chain transaction where a simplification rule is applied. A triangular transaction may exist where three entrepreneurs enter into sales transactions in three different Member States on one and the same commodity and this commodity passes directly from the first entrepreneur (= first supplier) to the last entrepreneur (= last purchaser).
Also, visit the chain transaction calculator. With just a few clicks, you can evaluate your particular chain and/or triangular transaction here. By clicking on the above sketch, you get directly to the triangular transaction France/Germany/Poland of the chain transaction calculator. Facts (triangular transaction):A Polish entrepreneur E3 (= last purchaser) orders a machine at his German merchant E2 (= first purchaser or acquirer). The latter, in turn, orders this machine from the French manufacturer E1 (= first supplier) and instructs him to dispatch the machine directly to the Polish entrepreneur E3. Benefit of the simplification rule:The simplification rule of § 25b UStG (German Value Added Tax Act) leads to none of the entrepreneur involved in the triangular transaction has to obtain a foreign VAT registration. Without the application of the simplification rule, the first purchaser E2 in the above example (the German merchant) would have to obtain a VAT registration in the country of arrival of the goods supplied (Poland). This would mean he would have to file monthly VAT returns. Legal consequence of the simplification rule:The tax liability of the first purchaser E2 transfers to the last purchaser E3 (reverse charge procedure). Thus, no taxation takes place in the Member State of the first purchaser (the entrepreneur in the middle). The intra-Community acquisition (in Germany) is deemed to be taxed and the VAT registration of the first purchaser in the country of arrival of the goods supplied (Poland) is avoided. Without the application of the simplification rule, the first purchaser E2 would have to report an intra-Community acquisition (with right of VAT deduction) and a (taxable) domestic supply in the country of arrival of the goods supplied, as well as an additional intra-Community acquisition (without VAT deduction) in the country whose VAT identification number (also called VAT registration number) he uses in the event that he does not transact with a VAT identification number of the country of arrival (25b.1. (1) UStAE (VAT Application Decree)). The main grounds for exclusion (from the perspective of the German legislation):
Note: You have to pay attention to more than 10 preconditions in connection with triangular transactions.
The "technical handling" of the triangular transaction:
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Triangular transaction special case (E1 and E2 have the same nationality):
Also, visit the chain transaction calculator. By clicking on the above sketch, you get to the appropriate example of the chain transaction calculator (www.chaintransaction-calculator.de). The example can also be evaluated for other countries here. Facts:A German entrepreneur E3 (=last purchaser) orders a machine from a French wholesaler E2 (=first purchaser). He, in turn orders this machine from the French manufacturer E1 (=first supplier) and instructs the latter to send the machine directly to the German entrepreneur E3. The French wholesaler E2, however, does not use his French VAT identification number but appears with a Dutch VAT identification number in this chain transaction. Legal consequence of using three different VAT identification numbers:
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Failed triangular transaction I (when the last purchaser picks up the goods):
Also, visit the chain transaction calculator. By clicking on the above sketch, you get to the appropriate example of the chain transaction calculator (www.chaintransaction-calculator.de). The example can also be evaluated for other countries here. Facts:A Polish entrepreneur E3 (= last purchaser) orders a machine from a German wholesaler E2 (= first purchaser). He, in turn, orders this machine from the French manufacturer E1 (= first supplier). The last purchaser E3 has the machine picked up at the first supplier E1. The consequences of the failed triangular transaction I:
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Failed triangular transaction II (when the goods are delivered to a 4th entrepreneur):
Also, visit the chain transaction calculator. By clicking on the above sketch, you get to the appropriate example of the chain transaction calculator (www.chaintransaction-calculator.de). The example can also be evaluated for other countries here. Facts:A German entrepreneur (E3) orders a machine from his French merchant (E2). The latter, in turn, orders this machine from the Polish manufacturer (E1). The Polish manufacturer delivers the machine as per the order to Germany, but not to the entrepreneur E3, but to E3’s customer E4, who is also established in Germany. The consequences of the failed triangular transaction II:
This side is just an excerpt. Would you like to have access to additional information on triangular transactions und further examples?
The above explanations are just an excerpt from the translation of the German-language page www.dreiecksgeschaeft.de. Via registration, you gain access to the complete translation of this page, as well as full access to www.chain-transaction.de and www.chaintransaction-calculator.de. You will be able to retrieve about 5000 examples of chain transactions (and triangular transactions) via the chain transaction calculator. You can find further information on this HERE. For full access to the chain transaction calculator, I request your registration via the link below:
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