Identifying EU Triangulated Goods
European Union (EU) triangulation means a sale that involves supplies of goods between three VAT-registered traders in three different EU member states.
For example:
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A company in the UK receives an order from a company in Austria.
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The UK company sources the goods for the Austrian customer from a supplier in Germany.
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The German company invoices the UK company.
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The German company delivers the goods to the Austrian company.
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The UK company invoices the Austrian company.
NetSuite’s International Tax Reports SuiteApp enables you to identify goods involved in EU triangulation.
When you select an EU customer on a transaction record (sales order, invoice, cash sale, credit memo, or cash refund), the EU Triangulation column is added on the Items subtab.
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To mark a line item as EU triangulated goods, check its corresponding box in the EU Triangulation column.
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To mark all line items as EU triangulated goods, click the Mark EU Triangulation Column button after entering all line items. To clear EU Triangulation boxes for all line items, click the Clear EU Triangulation Column button.
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To add shipping charge on an EU triangulation transaction:
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Create an item record for the shipping charge. Select Other Charge as the item type. For more information, see Creating Item Records.
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On the sales transaction record, select the shipping charge item as a line item and check its corresponding box in the EU Triangulation column.
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Make sure that the EU Triangulation column is shown on customized sales transaction forms. By default, the Show box for the EU Triangulation column is checked in the custom form definition. Do not clear this box when you customize transaction forms.
When you generate an EU Sales List (ESL) report, the transactions you marked as part of an EU triangulation deal will have a default indicator of Triangulated Goods. For more information, see Generating an EU Sales List Report.