The EU General Court clarified that simplified triangulation can be used in four-party supply chains if the third party has disposal power, even when goods are delivered to a fourth party. Dutch policy confirms this but adds an establishment requirement for party C, which may be overridden by the EU VAT Directive. The ruling also allows Member States to refuse the scheme in cases of VAT fraud.
The Court ruled that simplified triangulation applies even if goods do not physically arrive at the third party, as long as the third party has the power to dispose of the goods as owner, and the intermediary’s awareness of delivery to a fourth party is irrelevant.
In the Netherlands, simplified triangulation applies if the Netherlands is party A or B, or if parties C and D are established in the Netherlands and the Netherlands is the country of arrival, with a requirement that party C must be established in the Netherlands if it is the country of arrival.
Yes, entrepreneurs can disregard the Dutch requirement by invoking the EU VAT Directive, as the requirement conflicts with the directive.
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TaxLive · 5 days ago
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EY Global Tax News · about 7 hours ago
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