British companies performing triangular operations in the EU

Before Brexit, your company could buy and sell goods in the EU without any major hurdles. From a fiscal perspective, there are a bunch of simplification rules within the EU which enabled your company to trade in different EU member states without even needing to be VAT registered in other EU member states (except in your own member state).

What changed and how to adapt to these changes?

In this article we would like to talk about British (or other non-EU) companies trading goods within the EU. In other words, your company has become now a non-established company in the EU, buying and subsequently reselling the same goods without the goods ever leaving the EU, often called a triangular operation.

From a customs perspective, these kind of transactions remain of course intracommunity movement of goods, so no customs are involved in this process.

But from a fiscal perspective, things are not so simple anymore. Since 1 January 2021, these simplification rules cannot be used anymore by British companies as their GB VAT number is no longer an EU one. RMB is proud to provide your company with practical solutions to these new challenges.

By registering your business for VAT in France, your company will again gain the right to use all the VAT exemption rules available in the EU.

Triangular operations

Let's clarify our solution with an example:

  • Your company is a non-EU established company.
  • Core business: is trading in food products.
  • Type of operation: buying from production plants within the EU and resell to smaller grocery shops (VAT registered businesses).
  • Your company agreed with all suppliers that the goods are to be delivered directly to the grocery shops.
  • There is one single transport in parallel with multiple purchase/sales operations.
  • The supplier and the grocery shop are not in the same EU member state.

By registering your company for VAT in France, you can buy again from all EU suppliers within the EU and sell subsequently to EU VAT registered businesses using the triangular operation simplification rules. This way, you do not need to be VAT registered in each EU member state where they acquire goods and subsequently from where they sell to another EU member state.

Contact our team by using the contact form here below or book an appointment with one of our advisors right away in the booking tool here below as well!

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Do you have questions about how RMB can help your business? Send us an email and we’ll get in touch with you shortly, our VAT experts are always happy to help. You can also contact us by phone: +33 3 20 25 70 70.

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