Denmark’s simplified triangulation mechanism is an EU scheme which is applied when there is a supply chain of goods made up of three businesses from different Member States (classed as A, B and C). The businesses are VAT-registered in their Member States and goods are delivered directly from the first supplier in A to the last customer in B. Without the application of this scheme, the business in member state B would need to be registered for VAT in either A or C, but through triangulation the business is relieved of this requirement. Under current Danish rules, the middleman (business in member state B) cannot be registered for VAT in either A or C in order for triangulation rules to apply. However, from 1 July, the restriction is being removed and triangulation will still apply even if the middleman registers for VAT in A or C. The change will open up new opportunities for businesses in Denmark and will allow more companies to take part in the triangulation scheme.
Denmark to Adjust VAT Registration Rules in Triangulation Scheme
