Zjednodušení pro třístranný obchod funguje i v situaci čtyř subjektů

The Tribunal of the Court of Justice of the EU ruled in case T-646/24 regarding whether the simplification for triangular transactions can be applied in a supply chain involving four entities registered for VAT in three EU member states.

Doubts primarily arose concerning the fulfillment of the condition that the goods are directly dispatched or transported to the person for whom the subsequent delivery is made (i.e., the third entity in the third member state).

The Tribunal confirmed that the condition is met even if the goods are physically transported to another entity in the chain that is registered in the same member state as the third entity. Whether the second entity in the chain was aware of the existence of such additional entity does not play a role according to the Tribunal.

The simplification for triangular transactions reduces the administrative burden on the second entity in the chain, which does not need to register for VAT and fulfill related obligations in the member state of its customer.

However, according to the Tribunal, the tax authority may refuse the application of the simplification if conscious participation in fraud is proven (in practice, this condition is interpreted quite broadly by tax authorities and courts).

Participation in fraud, as well as application in an inappropriate situation, carries significant risks. For example, this could involve the withdrawal of exemptions, loss of deductions, inability to reduce the output tax, reassessment of tax on output, and application of joint liability. We are happy to assist you with the setup of multilateral transactions.

Authors:

Ivana Krylová

Ondřej Doubek