Q:
Hi
If we (in the UK) contract to supply and install goods in another EC state as an intermediate supplier, then contract with a supplier in a 3rd EC state to carry out the supply and installation, can we use the triangular simplified procedure, or do we as the intermediate supplier need to register in the state of installation?
Thanks again
A:
Sorry for the delay in giving you an answer on this one – just catching up after a family bereavement.
You’ve probably found the answer to your query elsewhere by now but this is what I think.
My understanding of the general principles is that that the triangulation procedure can’t be used for installed/assembed goods and I’ve never come across it being done in practice. As you know there is a simplification procedure that allows the customers of installed or assembled goods to account for the VAT so that the supplier doesn’t have to register for VAT in the country concerned – see VAT Notice 725: The Single Market, section 11 here: http://tinyurl.com/2wb3mwr for details. But this can only be used when the recipient of the supply is registered for VAT in the country in which the goods are to be installed.
The triangulation rules – which I’m sure you’re familiar with – are specifically for supplies of goods and not installed goods. The difference is relevant as the place of supply of goods and goods which have to be installed or assembled is different under EC VAT law. The triangulation procedure for supplies of goods is a specific easement facility which is a concession approved by all EC member states and under the current rules can’t be used for installed or assembled goods.
You can find more details about the simplification for installed good and triangulation here http://www.hmrc.gov.uk/manuals/vatsmanual/VATSM5000.htm in the HMRC manuals. I can’t see any reference to using triangulation for installed goods.
While there isn’t an EC wide triangulation procedure for installed/assembled goods, it’s possible that certain individual member states will allow a similar facility for such supplies. You’d have to contact the VAT authorities in the member states concerned for more information.
I’d certainly be interested if you find any way of using triangulation in this way, but I can’t see it working.
Marie