Chain transaction and simplified VAT procedure
In a chain transaction involving more than 3 parties, the simplified VAT procedure may also be applied.
However, the conditions for application of the simplification must be met and the simplified procedure is only applied to supplies between three participants in this chain transaction. This was confirmed by DKIS in its latest tax interpretation.
This position results in a change in thinking regarding the principles of VAT accounting for chain transactions.
Having such transactions with EU entities in the company, it is worth analysing the supply models and rethinking the ways of accounting for them.
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