1. TRIANGULATION

2. 2 PLACE OF SUPPLY OF GOODS

3. 3 Reminder : place of supply of goods MS 1MS 2 Invoice TRANSPORT IN THE RELATION B - C Place of supply A – B and B – C in MS 1 A-B = No transport = where goods are put at the disposal of B B-C = Transport = where transport begins/Registration of B in MS 1 A B C

4. 4 Reminder : place of supply of goods MS 1 MS 2 Invoice TRANSPORT IN THE RELATION A - B Place of supply A–B in MS 1 Place of supply B–C in MS 2 Transport Where transport begins No transport Where goods are placed at the disposal of C A B C

5. 5 PLACE OF INTRA-COMMUNITY ACQUISITION

6. 6 Reminder : place of intra-Community acquisition of goods Place where transport ends

7. 7 Reminder: place of intra-Community acquisition of goods Member State VAT Identification Number Security net

8. 8 TRIANGULATION DEFINITION

9. 9 Triangulation (ABC) - Definition MS 2 B MS 1 A MS 3 C Sale 1 Sale 2 Transport 3 taxable persons (ABC) in three different Members States 2 sales : A – B and B – C 1 transport directly from A to C

10. 10 TRANSPORT BETWEEN B AND C

11. 11 Triangulation - Transport between B and C - No simplification possible MS 2 B MS 1 A MS 3 C Sale 1 Sale 2 Transport between B - C Supply A–B (no transport): place where goods are put at disposal of B (MS 1): local supply + VAT Supply B–C (transport): place where transport begins (MS 1) = IC supply exempt from VAT by B in MS 1 (B must register for VAT in MS 1) C is doing an intra-Community acquisition in MS 3

12. 12 TRANSPORT BETWEEN A AND B NO SIMPLIFICATION

13. 13 Triangulation - Transport between A and B MS 2 B MS 1 A MS 3 C Sale 1 Sale 2 Transport between A - B Supply A–B (transport): place where transport begins (MS 1) = IC supply exempt from VAT by A in MS 1 Supply B–C (no transport): place where goods are put at disposal of C (MS 3) B is doing an intra-Community acquisition in MS 3 followed by a local supply to C in MS 3 (VAT registration of B in MS 3)

14. 14 TRANSPORT BETWEEN A AND B SIMPLIFICATION MALTA IS MS 1

15. 15 Triangulation - Transport between A and B - Simplification MS 2 B MALTA A MS 3 C Sale 1 Sale 2 Transport between A - B Intra-Community supply made by A in Malta is exempt from VAT if conditions are fulfilled B is communicating a valid VAT number of another Member State (MS 2) to A B is reported as the purchaser of the goods in the recapitulative statement of A, under the VAT number of B in MS 2

16. 16 TRANSPORT BETWEEN A AND B SIMPLIFICATION MALTA IS MS 2

17. 17 Triangulation - Transport between A and B - Simplification MALTA B MS 1 A MS 3 C Sale 1 Sale 2 Transport between A - B B communicates to A his Maltese VAT number : application of the security net Normally intra-Community acquisition by B in Malta but… Item 14(1) Third Schedule

18. 18 Triangulation - Transport between A and B - Simplification MALTA B MS 1 A MS 3 C Sale 1 Sale 2 Transport between A - B ICA made by B in Malta is deemed to have been subject to VAT in MS 3 if B proves it is made for the purpose of a subsequent supply in MS 3 + 2 conditions: C is reported as the person liable to pay VAT on the local supply to C in MS 3 Code “T” must be reported in the recapitulative statement for the supply made to C B reports this sale to C in the box “IC supply exempt” in his VAT return Item 14(2) Third Schedule

19. 19 TRANSPORT BETWEEN A AND B SIMPLIFICATION MALTA IS MS 3

20. 20 Triangulation - Transport between A and B - Simplification MS 2 B MS 1 A MALTA C Sale 1 Sale 2 Transport between A - B ICA made by B in Malta is exempt from VAT if conditions are fulfilled C is registered under articles 10 or 12 and is reported as liable to pay VAT on the subsequent local supply made by B in Malta C must report this purchase in the box “ICA” of his VAT return Item 1 Fifth Schedule Part Three Art.20(2)(a) VAT Act