Value Added Tax Consolidation Act 2010 section 40

Special consideration rule, triangulation

Section 40 provides a relief mechanism to prevent double taxation where an intra-Community acquisition is deemed to take place in Ireland but VAT has already been accounted for in another Member State under the triangulation simplification procedure.

• Where an intra-Community acquisition is deemed to occur in another Member State under section 32(1), and also in Ireland under section 32(2), a potential double taxation situation arises.
• If VAT has been charged and accounted for on the acquisition in the other Member State, the consideration for the Irish acquisition is reduced to nil, effectively cancelling the Irish VAT charge.
• This rule applies in triangulation scenarios where a trader uses an Irish VAT number to acquire goods from one Member State but the goods are physically delivered to a different Member State.
• The relief ensures that VAT is paid only in the Member State where the goods actually arrive, preventing the same acquisition from being taxed twice.