Triangulation
Category: Tax
Definition (plain English)
VAT triangulation is an EU simplification for certain three-party, three-country chain transactions that can avoid a middle supplier’s VAT registration in the customer country. It applies only when strict conditions are met.
Why it matters commercially
Triangulation changes tax treatment and filing obligations, so mistakes can create reassessments, penalties, or blocked recoveries.
Example
Broker and importer aligned triangulation details before filing to avoid holds, reassessment, or post-clearance corrections.
Common mistake
Applying Triangulation based on assumptions from another country or flow without validating eligibility conditions.
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