Conditions for simplified A-B-C supply chain transactions
You will have fewer obligations if you apply the simplified A-B-C supply chain transaction. There is no need for you to register in the country of your client if you are the middleman B in an A-B-C supply chain transaction within the European Union. However, you must comply with the following conditions:
- You must be able to provide evidence of having bought the goods from A with the aim of successively selling them to C. You may provide such evidence by submitting a contract or an offer.
- There are 3 business operators who each have a VAT identification number in a different EU country.
- You make an arrangement with A in respect of the transport of the goods.
- The goods go directly from A to C in the country of C.
- You are not registered in the country of C.
- You already have to submit your VAT returns in the Netherlands in respect of other taxable activities.
- You include your intra-Community supply to C in your VAT return and in your intra-Community transactions declaration.
Your invoice has to comply with additional requirements
If you are the middleman B in an A-B-C chain supply transaction and if you apply the simplified A-B-C supply chain transaction, you have to add the following information to the standard requirements of your invoice:
- your own VAT identification number
- the VAT identification number of the buyer C in the country of C
- the statement:
- 'reverse-charging of a simplified A-B-C supply chain transaction' or
- 'intra-Community supply'
In this way you inform buyer C that he must submit the VAT return as you are using the simplified arrangement.