The setup

A (supplier, country 1) sells to B (trader, country 2). B sells to C (customer, country 3). The goods ship once, from A to C. Every party is based in a different EU member state and acts under its own VAT number.

How the simplification works

Under the standard rules, B would register for VAT in C’s country to report an acquisition and a local sale there. Under the triangulation rule, B invoices C free of VAT, with the mention “reverse charge” (in Dutch: “btw verlegd”). C reports the VAT in its own return. B then avoids registration in country 3.

Invoices and declarations

  • A invoices B for an intra-EU supply at 0%, with transport evidence to country 3.
  • B invoices C: 0% with the triangulation mention and both VAT numbers, verified through VIES.
  • In its ICP declaration, B marks the transaction as triangular.

If you already have a Dutch company and want help with the paperwork, see corporate services in the Netherlands. One English-speaking team can do the bookkeeping, the VAT, the payroll, the annual accounts and the KVK filings for you.

The bookkeeping can be handed over while you live abroad. On bookkeeping in the Netherlands you can read what you send, what is filed for you and what you get back.

When the simplification applies

The simplification applies to exactly three parties in three member states, with one transport. With a fourth link in the chain, or a party outside the EU, the general rules apply. You can read about these in VAT across borders.