For questions and remarks with respect to the application of the simplified ABC-supply, please contact us.
MFFA Belastingadvies | Tax Advice
ABC Transactions – simplified VAT-rules
Entrepreneurs buying and reselling products within the European Union with the transportation being performed by the initial supplier can under certain conditions apply for simplified VAT-rules (ABC transaction / simplified ABC supply). These rules can not only favor independent parties, but also group entities.
We will discuss the simplified ABC-supply in the VAT by using an example. Additional invoice requirements and other duties will be included.
Example ABC supply
German entrepreneur A sells products to the Dutch entrepreneur B. B resells these products directly to Belgium entrepreneur C. B tells A to deliver the products directly to C in Belgium. The transport is part of the agreement between A and B.
Supply from A to B
Supply from B to C
Practical effect of the simplified ABC-supply
- B does not include the invoice received from A in his VAT tax return.
- B sends C an invoice without VAT stating the following:
- VAT-identification number B
- VAT-identification number C
- The phrase: “intra-Community acquisition”
- B includes the invoice send to C in his VAT tax return as intra-Community acquisition and in his intra-Community transactions declaration. In the declaration B should include the VAT-identification number of C.
- C calculates the Belgium VAT itself and takes care of the payment.
Conditions for applying Simplified ABC-supply
- B have to be able to prove the products bought form A with the purpose to resell them to C (e.g. by means of a contract of offer)
- B agrees with A about the transportation.
- The products go directly from A to C in Belgium.
- It concerns a transaction between three entrepreneurs each with a VAT-identification number is different EU Member States.
- B is not registered for VAT purposes in Belgium
- B includes the supply to C in his intra-Community transactions declaration.
Would you like more information with respect to the application of the simplified ABC-supply?
Please contact MFFA Tax Advice. Additionally it is possible to let MFFA Tax Advice take care of your VAT assessment and intra-Community transactions declaration. In case you have other questions regarding tax related subjects, please do not hesitate to contact us