Simplified A-B-C supply chain transaction

In a standard A-B-C supply chain transaction, the business operator A sells to B and B sells to C. The goods go directly from A to C. If the transport occurs within the framework of the supply (A-B), B must register in the country of C and he must submit the VAT return there. In a simplified A-B-C supply chain transaction, there is no necessity for registration and submission of a VAT return.

Registration is not necessary

You may submit your supply to C in the Netherlands provided you comply with the following three conditions:

  • As a foreign business operator you are middlemen B.
  • You already have to submit your VAT return in the Netherlands for other taxable activities.
  • You do not wish to register as a business operator in the country of C.

The advantage to you is that there is no need for you to register in the country of C. If you are registered in country C you may not apply the arrangement of the simplified A-B-C supply chain transaction.

What do you have to do?

If you are the middleman B, you will receive an invoice with 0% VAT. You do not include this purchase in your VAT return. You designate the second transaction (from you to C) as an intra-Community supply. You send an invoice without VAT. Such an invoice must comply with additional requirements. You submit the supply in your VAT return and you include it in your intra-Community transactions declaration. Business operator C calculates the VAT owed and files the return in his own country.

Conditions and requirements

You can apply the simplified arrangement if you comply with the conditions.

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