Boston University School of Law

Vogtländische Straβen-,Tief- und Rohrleitungsbau GmbH Rodewisch (VSTR) v. Finanzamt Plauen –  
VAT Triangulation v. Drop Shipments

Richard T. Ainsworth
Boston University School of Law

Boston University School of Law Working Paper 13-25
(June 14, 2013)

Abstract

In ECJ Case 587/10 (Vogtländische Straβen-,Tief- und Rohrleitungsbau GmbH Rodewisch (VSTR) v. Finanzamt Plauen) an American firm, Atlantic International Trading Company (AIT) is a middleman in an otherwise all-European VAT triangulation.   AIT appears to have approached its compliance obligations as if it was a middleman in an American drop shipment.

However, drop shipments are treated very differently from VAT triangulations. 

Commercially these transactions are very similar.  They are composed of two back-to-back sales, A/B followed by B/C, with a single delivery from A directly to C.  This article compares the tax treatment of drop shipments under the RST with triangulation transactions under the EU VAT.  Under both systems when a single integrated transaction involves third-party middlemen compliance can be difficult.   

 

Adobe Acrobat Reader v3.01 or greater is required to view this paper.
To obtain a free copy, click the button below

Richard T. Ainsworth Contact Information
Email: vatprof@bu.edu
LL.M. Tax Program
Boston University School of Law
765 Commonwealth Ave
Boston, MA 02215
Phone: (781) 773-1052

 

This draft can be also found at the link below:

SOCIAL SCIENCE RESEARCH NETWORK