VAT triangulation

VAT triangulation is applicable when there are three companies involved in a single transaction, and they are in different EU countries. For example, a Spanish company with a Spanish VAT registration sells goods to a German customer, but the Spanish company first has to buy the goods from a French vendor prior to shipment directly to the German customer. Simplified triangulation permits the French vendor to issue a sales invoice to the Spanish company with its VAT number on it, but no VAT is charged as this is a regular intra-community dispatch of goods; the German customer becomes responsible for recording the arrival of goods into Germany as an intra-community supply (shifting the reporting requirement from the Spanish company); the Spanish company includes the acquisition and dispatch in its own VAT reporting.

How Infor meets this requirement

EU-member countries can configure these required entities in FSM:

  1. Vendor: Billing Company. The vendor shows the dispatch of goods in the intrastat report.
  2. Trader: Both the Payables Company and Receivables Company. The trader can include both acquisition and dispatch in the VAT Report. The sale can also be reported to their customer in the EC Sales List.
  3. Customer: Payables Company. The customer shows the arrival of goods in the intrastat report.

See Tax entities inTax User Guide.

See Creating entity tax codes in Tax User Guide.

See European tax reporting and Intrastat reporting in Tax User Guide.