4 party triangulation permissible in the Netherlands

In a recent update published by the Belastingdienst (KG:210:2024:3), it has been deemed that triangulation involving 4 parties is permissible where goods are sent by the first to the last company in a 4 party chain transaction.

In the example provided, a Dutch company (B), purchased goods after January 2020 from Polish supplier (A), and transported same directly from Poland to the final customer of his customer (D), both situated in France. Since B is not VAT registered in France, the company would look to apply triangulation, meaning that his French customer (C) would self-account for the VAT due on the supply in France, in line with Articles 141 and 197 of the EU VAT Directive 2006/112.
Article 141 (C) of the EU VAT Directive stipulates that the goods must be delivered directly to party C. However, in this example, the goods would be sent to the address of party D in the same Member State of arrival.
The publication clarifies that the fact that the goods are delivered to an address other than that of B’s customer (both C and D being in the same Member State) should not preclude the application of the triangulation simplification by party B. By delivering the goods to the Member State of arrival, in which his direct customer (C) will self-account for the VAT due, B fulfils his obligations towards C.
It is important to note that the application of 4 party triangulation may be permitted by the Dutch VAT Authorities, but that other Member States may not allow this approach. In the example given in the publication, direct delivery to party D would still allow triangulation, unless C advises B that France does not allow this.
It is worth noting that Dutch VAT legislation (Art 37c section b) currently allows triangulation for goods delivered on behalf of B to the Netherlands where party C is established in the Netherlands and not just VAT registered, which is not in line with Article 141 of the EU VAT Directive which requires only a valid VAT ID number in the Member State of arrival.