Avalara is enhancing the AvaTax VAT/GST Determination solution to support more complex calculation logic and content for EU Triangulation use cases. This enhancement is effective in AvaTax as of January 1, 2024.
Use case definition
An EU Triangulation use case involves two supplies of goods between three VAT registered traders in three different EU Member States, i.e., Party A (origin), Party B (or middleman) and Party C (ship to).
What is changing?
Previously, we required that the user set isTriangulation
to true
in the transaction request for the following use cases:
We have enhanced our AvaTax functionality to make it optional to set isTriangulation
to true
in use cases 1 and 2 above.
We have also added two new parameters for use with Triangulation:
PartyCVATIDCountry
: Used in triangulation to verify that Party C has provided a VAT ID for the country the goods are shipped to. Input should be 2 digit country ISO code.PartyAVATIDCountry
: Used in triangulation to identify the location of Party A and origin of the goods. Input should be 2 digit country ISO code.Below is further information about the conditions that are required for different use cases to return the correct tax result in AvaTax. Please note that no immediate action is required as the current functionality for EU Triangulation use cases is still applicable.
Attribute/parameter | Invoice 1 - Sale Party A to Party B | Invoice 1 - Purchase Party B from Party A | Invoice 2 - Sale Party B to Party C | Invoice 2 - Purchase Party C from Party B |
| Sales Invoice or Order | Purchase Invoice or Order | Sales Invoice or Order | Purchase Invoice or Order |
| Goods | Goods | Goods | Goods |
| Ship From and Ship To in EU but in different EU countries | Ship From and Ship To in EU but in different EU countries | Ship From and Ship To in EU but in different EU countries GoodsPlaceOrServiceRendered same as Ship To Country | Ship From and Ship To in EU but in different EU countries GoodsPlaceOrServiceRendered same as Ship To Country |
| Seller | Seller | None | None |
| n/a | EU country different than Ship From Country or Ship To Country | EU country different than Ship From Country or Ship To Country | EU country different than Ship From Country or Ship To Country |
| n/a | Same as Ship To Country. Only required if | n/a | n/a |
| n/a |
|
| True |
| n/a | n/a | Same as Ship From Country. Only required if | n/a |