Sweden Tax Agency Explains Cross-Border Sales in Chain Transactions

The Swedish Tax Agency Jan. 17 explained the VAT treatment for chain transactions of a product subject to a single cross-border transport between EU countries. The explanation clarifies: 1) the requirement of a chain transaction to include at least three parties with an agreement for purchase and resale of the product; 2) the responsibilities and reporting obligations of an intermediary for the transport; 3) the definitions of single transport and tripartite trading; 4) the tax treatment when the end-user of the transaction is a private individual; and 5) the applicable laws and EU VAT directive for cross-border transport. [Sweden, Tax ...