VAT and 3-Party Transactions
17 October 2017
VAT can get very complicated when there are three parties involved in a transaction.
The key is to understand which role each party plays - principal, agent or customer. If the roles are confused, the wrong person may reclaim the VAT or the VAT liability may be missed by all parties, resulting in potential penalties and interest on late paid VAT when the error is discovered.
Read our guide VAT and three-party transactions for more clarity on this issue. Get in contact with us to discuss any complex VAT issues.