Triangular operation
Commercial transaction involving three parties in three countries, where goods are shipped directly from supplier to end customer.
A triangular operation refers to a commercial transaction involving three operators in three different countries, where the physical flow of goods does not follow the commercial flow (invoicing). Typically, company A (country 1) sells to company B (country 2), which resells to company C (country 3), but goods are shipped directly from A to C.
In customs terms, these operations raise complex questions about the customs value to declare (first sale or last sale value?), the origin of goods, and the determination of the declarant and person represented. The UCC provides that customs value is generally based on transaction value, but adjustments may be necessary.
From a tax (VAT) perspective, intra-Community triangular operations benefit from a simplified regime avoiding VAT registration in the transit country. The intermediary company invoices VAT-exempt provided the VAT Directive conditions are met.
Triangular operations require particular attention to documentation: invoices, transport documents, and customs declarations must correctly reflect the reality of commercial and physical flows to avoid customs or tax reclassifications.