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
This table shows the required entities that can be configured in FSM by members of EU
countries:
| Role | Configurable entity | Description |
|---|---|---|
| Vendor | Billing Company | Shows the dispatch of goods in the intrastat report. |
| Trader | Payables Company Receivables Company |
Can include both acquisition and dispatch in the VAT Report. The sale can also be reported to their customer in the EC Sales List. |
| Customer | Payables Company | Shows the arrival of goods in the intrastat report. |
See the Tax User Guide for this information:
- Tax entities
- Creating entity tax codes
- European tax reporting
- Intrastat reporting