Bulgaria - triangular transactions

Intra-community triangular transactions of goods

In an intra-community triangular transaction of goods are involved 3 companies from 3 different EU countries. All 3 companies must have valid VAT numbers. The companies involved are: the company A from the EU member state 1, the company B from the EU member state 2 and the company C from the EU member state 3. The company B from the EU member state 2 is the intermediary. The company A from the EU member state 1 sells the goods to the company B from the EU member state 2 and the company B from the EU member state 2 sells the goods to the company C from the EU member state 3. The goods are delivered directly from the company A from the EU member state 1 to the company C from the EU member state 3.
The intra-community triangular transactions of goods are taxed with a zero rated VAT.

In order to benefit from the zero VAT in a triangulation, a number of conditions must be met:

  • The companies must be from 3 different EU countries;
  • All 3 companies must have valid VAT numbers;
  • The transport must be done directly from the supplier from the first country to the final buyer from the third country;
  • The final buyer must sign a declaration of receipt (at least in Bulgaria CMR only is not sufficient).
A triangular operation involving more than 3 companies is not possible, a quadrangular operation does not exist.

triangular_transaction

 

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