Triangulation

Triangulation is a type of EU trade in which an agent company in one EU country negotiates items from a vendor in a second EU country to a buyer in a third EU country.

The items are delivered directly from the vendor to the end-customer, but the vendor invoices the agent, who in turn invoices the customer. For vendor and customer, the sale and purchase are treated as a normal EU trade, i.e. the vendor invoices without tax and the customer settles EU acquisition tax. The agent, on the other hand, does not settle acquisition tax and the sale to the customer must be entered in the sales list system reports with a particular code. In Maconomy, triangulation is indicated in the “EU Trade Type” field in sales and item purchase orders.