Chain transactions

If the goods are supplied only between two VAT taxpayers, i.e. the seller and the buyer, and the goods are shipped or transported from one EU country to another EU country (or to a non-EU country), the rules for settling VAT are generally simple. As a rule, there is an intra-Community supply of goods (ICS) in the country of dispatch, and an intra-Community acquisition of goods (ICA) in the country of goods’ destination, respectively. And when the destination is an non-EU country there is an export of goods in the country of dispatch and import of goods in the country of the goods’ destination accordingly.