GlossaryEN1 min readUpdated: Jun 18, 2026

Chain transaction abroad

Correctly handling a cross-border chain transaction depends on one key determination: which link in the chain carries the single physical movement of goods.

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Last updated: 18 June 2026Published: 27 January 2026

Source: https://en.wikipedia.org/wiki/Chain_transaction

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Logistics Concept

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Definition & Explanation

Correctly handling a cross-border chain transaction depends on one key determination: which link in the chain carries the single physical movement of goods. A chain transaction abroad involves the same goods being sold successively between taxable persons established in different countries or VAT territories, while the actual transport takes place only once. Each jurisdiction applies its own VAT rules to the supply occurring on its territory, so the tax treatment of each leg must be assessed individually. The party who commissions the transport – whether the first seller, an intermediary, or the final buyer – is the decisive criterion for attributing the physical movement to the correct supply. Misattribution routinely results in double taxation or unjustified input tax deductions, both of which carry significant penalty exposure. In parallel, customs law requires separate analysis: import and export declarations must be assessed independently of the VAT chain structure.

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Chain transaction abroad

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