Source: https://chaintransaction-calculator.de/E1_arranges_dispatch/Chaintransaction_FR-DE-AT-kA.php
Timestamp: 2020-08-13 20:15:00
Document Index: 492801080

Matched Legal Cases: ['§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25']

Chain Transaction Calculator Germany / Dispatch by E1 (FR-DE-AT)
An Austrian entrepreneur E3 (= last purchaser) orders a machine from his German supplier E2 (=1st purchaser). Since the supplier E2 does not have the machine in stock, he orders it from the French wholesaler E1 (=first supplier) and instructs him to dispatch the machine directly to the Austrian entrepreneur E3.
Triangular transaction according to § 25b UStG
Special feature of this triangular transaction
Due to the application of the simplification rule for triangular transactions (§ 25b UStG), the tax liability of the German entrepreneur E2 is transferred to the Austrian entrepreneur E3 (reverse charge procedure).
The invoice must be issued without VAT and contain the following information: "Triangular transaction according to § 25b UStG" (or alternatively with reference to Article 141 of the Directive 2006/112/EC) und "Transfer of the tax liability pursuant to § 25b (2) UStG" (or alternatively with reference to Article 197 of the Directive 2006/112/EC) (see also § 25b.1. (6) UStAE). In addition to the own (German) VAT identification number, the invoice must contain the VAT identification number of the Austrian entrepreneur E3.
Due to the simplification rule of the triangular transaction, the tax liability from this supply transfers to the Austrian entrepreneur E3. The value of the outgoing invoice must nevertheless be recorded in line 38/code 42 (from a German perspective).
Declaration of the sales transaction to the (Austrian) VAT identification number of the Austrian entrepreneur E3 and labeling as a triangular transaction.
From the perspective of the last purchaser E3 (from Austria):
The incoming invoice contains no VAT, but the reference to the existence of a triangular transaction and the transfer of tax liability. The Austrian entrepreneur E3 thus has to calculate the tax himself based on the Austrian tax rates and include it in the VAT return on the one hand as VAT according to § 25b (2) UStG and on the other hand as input VAT from intra-Community triangular transactions according to § 25b (5) UStG. This is a zero-sum game, and does not result in any payment burden.
The above detailed descriptions from the perspective of the respective entrepreneurs represent only an indication of how the tax assessment would be if the German laws were to apply in all involved countries. National deviations from the German legislation were also not taken into account in the chain transaction sketch and the brief description!
You find the exact requirements for the applicability of the simplification rules for triangular transactions at www.triangular-transaction.de.
The assessment of this triangular transaction from the Austrian perspective you can find in the reihengeschaeftrechner.at
Alternative A: If the simplification rule for triangular transactions should not or may not be applied (e.g. if the German entrepreneur E2 is domiciled in Austria), then the supply from E2 to E3 is taxable in Austria (20% Austr. VAT) and the German entrepreneur E2 must register in Austria if he is not already registered.