On 7 October 2026, the General Court of the European Union ruled in Finanzamt für Großbetriebe (T-773/25) that adding the wording ‘reverse charge’ to invoices years later does not allow the VAT triangulation simplification to be applied retrospectively to earlier supplies.

For Dutch businesses using this simplification, the judgment is a clear reason to review their supply chains, invoices and VAT treatment. Incorrect application may result in additional VAT liabilities and VAT registration and filing obligations in multiple countries.

What happened in case T-773/25?

An Austrian wholesaler of workwear purchased goods from suppliers in Sweden and Denmark. The goods were shipped directly from those suppliers to business customers in other EU Member States.

The wholesaler used its Austrian VAT number and issued invoices without VAT, but did not state that the VAT liability was shifted to the customer under the reverse charge mechanism. It also reported the transactions as regular intra-Community supplies in its VAT return and EC Sales List.

Following a tax audit, additional VAT became due in Austria, without a corresponding right to deduct that VAT.

Years later, the wholesaler amended the invoices and corrected its VAT reporting in an attempt to apply the VAT triangulation simplification retrospectively. The General Court rejected this approach. Correcting the EC Sales

Lists did not resolve the issue either: the VAT obligations that had already arisen remained in place.

Why is ‘reverse charge’ important for VAT triangulation?

In a triangulation transaction, supplier A sells goods to intermediary B, who subsequently sells them to customer C. The goods are shipped directly from A to C in another EU Member State.

Subject to certain conditions, the VAT triangulation simplification prevents intermediary B from having to register for VAT in the country of customer C. Instead, customer C accounts for the VAT due on the supply made by B.

The wording ‘reverse charge’ on the invoice makes clear to customer C that it is responsible for accounting for the VAT. It is therefore not merely an administrative detail, but an essential condition for applying the VAT triangulation simplification.

The judgment shows that businesses cannot assume that an omitted invoice reference can simply be added years later while preserving the application of the simplification to earlier transactions.

What does the judgment mean for Dutch businesses?

The judgment concerns EU VAT rules that are also relevant to Dutch businesses. The requirement to include the wording ‘reverse charge’ on invoices when applying the VAT triangulation simplification is not new in the Netherlands.

Since 2 September 2023, the Dutch administrative approval allowing businesses to state ‘intra-Community supply’ instead of ‘reverse charge’ for these transactions has no longer applied.

If the conditions for the VAT triangulation simplification are not met, VAT registration and filing obligations may arise in the country where the goods arrive. Businesses supplying customers in several EU countries may therefore face multiple foreign VAT registrations.

Additional VAT may also become due in the country whose VAT identification number was used by intermediary B. The consequences can therefore be significant. The judgment also makes clear that, in this situation, amending the invoice afterwards does not have retroactive effect.

What should businesses review now?

A targeted review should go beyond the wording used on invoices. Businesses should assess the entire flow of goods and the corresponding VAT treatment:

  • Map the flow of goods: identify who buys and sells the goods, where the goods are shipped and who arranges the transport.
  • Assess the conditions for each supply chain: check which VAT numbers are being used and whether the VAT triangulation simplification can actually be applied.
  • Review invoices and system settings: ensure that ‘reverse charge’, the correct VAT number and the appropriate VAT codes are used consistently.
  • Review VAT reporting: check that invoices, VAT returns and EC Sales Lists are aligned.

Assess historical errors separately: determine which corrective actions are required for each country and period. Do not assume that correcting the invoice alone will be sufficient.

Combine the VAT triangulation review with preparations for ViDA

VAT in the Digital Age (ViDA) provides an additional reason to review these processes now.

From 1 July 2028, various EU VAT rules will change with the aim of reducing the need for foreign VAT registrations. From 1 July 2030, new electronic invoicing and digital reporting requirements will apply to certain cross-border business-to-business transactions.

Reliable VAT data and the correct setup of invoicing and reporting processes will therefore become increasingly important. Future simplifications will not eliminate existing errors in the application of the VAT triangulation rules.

Questions about VAT triangulation or ViDA?

RSM can help you assess your supply chains and the application of the VAT triangulation simplification, determine which corrective actions may be required and prepare your processes for ViDA. This enables you to address current VAT risks while preparing your organisation for future requirements.

Do you have a question? We will get back to you as soon as possible.

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