Triangulations in European Union VAT
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Triangulations in European Union VAT

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Questions and Answers

In a triangulation involving three VAT registered traders in different EU Member states, where are the goods delivered?

  • To a non-VAT registered trader
  • To a trader in the second Member state (MS2)
  • To a trader in the first Member state (MS1)
  • To a trader in a third Member state (MS3) (correct)

    • What is the primary purpose of a triangulation involving three VAT registered traders?

  • To complicate trade processes
  • To avoid VAT registration
  • To increase import taxes
  • To simplify cross-border trading within the EU (correct)

    • For a triangulation to occur, how many VAT registered traders are involved?

  • Four
  • One
  • Three (correct)
  • Two

    • What happens when a trader established in one EU Member state sells goods to a trader established in another EU Member state?

    <p>The goods are delivered to a trader in a third Member state</p> Signup and view all the answers

    Triangulations involves two supplies of goods between the three Value-Added Tax(VAT) registered trader in three different European Union (EU) Member states. For example, when a trader established in one Member State(MS1) sells goods to trader established in second member state(MS2).The goods ,however, are delivered to a trader in a third Member state(MS3).

    <p>triangulations</p> Signup and view all the answers

    For a triangulation to occur, how many VAT registered traders are involved?

    <p>three</p> Signup and view all the answers

    What happens when a trader established in one EU Member state sells goods to a trader established in another EU Member state?

    <p>triangulation</p> Signup and view all the answers

    In a triangulation involving three VAT registered traders in different EU Member states, where are the goods delivered?

    <p>third</p> Signup and view all the answers

    What is the purpose of the Intra Community Acquisition (ICA) in the context of triangulation?

    <p>To facilitate the VAT free supply from company B to company C</p> Signup and view all the answers

    How does company C account for the transaction with company B in its VAT return?

    <p>As a received supply</p> Signup and view all the answers

    What is the impact of company B quoting its VAT number in the context of triangulation?

    <p>It triggers the VAT information exchange system (VIES) return</p> Signup and view all the answers

    What does it mean for company C to be deemed to have accounted for company B's VAT liability in member state 3?

    <p>Company C is considered to have fulfilled its VAT obligations related to company B</p> Signup and view all the answers

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