Types of EU VAT transactions

The EU classifies the transactions in respect of goods into the following categories for VAT purposes:

1. Importations: when goods are imported into an EU country from a country outside the community.

2. Exports: when goods are shipped, within a certain time period from the date of sale, to a country outside the EU.

3. Acquisitions: when a VAT-registered person or entity “acquires” goods from a VAT-registered supplier in another EU member state.

4. Dispatches: when goods are shipped by a VAT registered person or entity in one member state to a VAT-registered person or entity in another member state.

5.  Triangulation:  A (in say Germany) invoices B (in the UK) and B invoices C (in say France) but the goods are shipped directly from Germany to France.  VAT simplification procedures apply.

There are also procedures for call-off stocks and consignment stocks.

RKG Consulting will be pleased to advise you of the VAT structure most appropriate to your business needs.  We can also assist you in obtaining the necessary VAT registrations in the EU.