Tax consultancy

Chain and triangular transactions are among the most complex areas of VAT, occurring when three or more entities are involved in the supply of the same goods and the goods are transported directly from the first supplier to the last purchaser.

In such a model, the key challenge is correctly assigning transport to a specific supply in the chain, which determines which transactions are "movable" (taxed at 0% on exports or IDT) and which are "immovable" transactions (taxed at the domestic rate applicable to the place of supply). An error in tax classification can lead to tax arrears in multiple jurisdictions simultaneously and the risk of having the right to deduct VAT challenged.

Unlike simple domestic deliveries, managing chain transactions requires analysis of delivery terms (Incoterms) and the role of individual entities in the transport. Our support includes identifying the so-called intermediary entity and verifying the applicability of the simplified procedure in triangular transactions, which allows for avoiding the need for VAT registration in other EU countries. Transport documentation, such as CMR waybills and customs documents, must be fully consistent with issued invoices and SAF-T reports to ensure secure settlements and the right to apply preferential VAT rates in international trade.

Determining the tax status of participants and the moment of transfer of the right to dispose of goods as an owner raises much controversy in chain transactions. BTTP offers comprehensive support in verifying supply chains, assisting in the preparation of tax opinions and internal procedures that mitigate the risk of incorrectly determining the place of taxation.