TQOTW – Triangulation Transaction Post Brexit
My client is a wholesale supplier of furniture; he buys from VAT registered manufacturers in the EU. Some of the goods are delivered to him in the UK, but some of the goods are sent direct by the manufacturer to my client’s business customers in the EU. He is fine with the supplies delivered directly to him in the UK and is happily dealing with the UK import VAT under Postponed Import VAT Accounting (PIVA). Prior to Brexit, he was able to use triangulation to allow his EU manufacturer to zero rate a supply of goods invoiced to him in the UK, but delivered to a VAT registered business in another EU member state, but his manufacturer is now saying they will have to charge him EU VAT. Is this correct? How can he deal with this?
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