Triangulation is now simpler in Denmark
As from 1 July 2019, Denmark will allow triangulation even if the intermediary (Party B) is registered in destination country (Country C).
The simplification on triangulation foreseen in the Directive involves a supply-chain with three different parties, each registered in different EU country. The original supplier sends the goods from the country of origin to the final client in the country of destination, but the invoice is sent to the intermediary who subsequently sends a second invoice to the final client. So there is one flow of goods but two flows of invoices. Where this supply-chain happens, triangulation allows the intermediary to avoid a VAT registration in the country of destination.
Although triangulation simplification is an EU wide scheme that should apply consistently across all EU member states, different requirements by each Member State create exceptions that prevent companies from applying this regime with the same approach in all countries.
Danish law used to require that the intermediary is not registered in the country of destination in order to allow the simplification. As from July 2019, triangulation may still apply even if the intermediary is registered in Country C and as long as this this intermediary does not have a permanent establishment in the country of destination.
This change will extend the scope of triangulation simplifications in Denmark.