Filing VAT returns and reports

As an exception, the definition of a triangular transaction is given in subsection 2 (8) of the Value-Added Tax Act. ‘A triangular transaction’ means a transaction for the transfer of goods, which involves taxable persons from three different Member States and who all are registered in their own Member States as taxable persons. In the case of a triangular transaction, the transaction is in question where goods are sold in two consecutive sales transactions and all three parties are situated in different Member States. According to the sales transaction, a taxable person A established in the first Member State (the transferor in the triangular transaction) sells the goods to a taxable person B established in the second Member State (the reseller in the triangular transaction) and who then in turn sells it on into the third Member State C (the acquirer in the triangular transaction); whereby the goods in question are transported directly from Member State A to Member State C.

If an Estonian taxable person is the transferor in the triangular transaction (A), he or she shall declare the intra-Community supply of goods in boxes 3, 3.1 and 3.1.1 of Form KMD and in column 3 of Form VD. If an Estonian taxable person is the reseller in the triangular transaction (B), he or she shall declare the triangular transaction in column 4 of Form VD. The resale in the triangular transaction is not the intra-Community supply of goods and the transaction shall not be declared in Form KMD. If an Estonian taxable person is the acquirer in the triangular transaction (C), he or she shall declare the acquisition in box 1 or 2, in boxes 4 and 7 of Form KMD. If such goods have been acquired wherefrom the input value added tax is entitled to be deducted, the amount of the calculated value-added tax shall be shown also in box 5 of Form KMD as the deductible input value-added tax.