SolvedVATNIEU5340 | Simplifications: processing of goods: processing different suppliers in the same member state
From HM Revenue & Customs · VAT Northern Ireland and the EU
The Principal (A) in member state 1 (MS1) sends goods to member state 2 (MS2) to a processor (B). But rather than being returned to A they are passed to a further processor in MS2 (C). The finished goods are then returned by C to A in MS1.
B and C are supplying processing services to A who will account for the VAT due on each supply as a reverse-charge. The movements of goods between the member states (which would otherwise amount to transfers of own goods by A) are disregarded as supplies and acquisitions.