Intrastat

 


 

 

Overview

Intrastat declarations have to be made if you are registered for VAT in an EC country and the value of your EC imports and/or exports exceed the declaration threshold for that country. If you only exceed one of the thresholds then you only need complete that one return.

All VAT registered traders in an EC state that sell goods and/or supply services to traders in other EC states also have to declare the value of those sales on an EC Sales List.

Most countries accept declarations submitted on paper, by post, or electronically. Although there are common standards, each country in the EC has adopted Intrastat in a slightly different way. The exact nature of the data to be declared, the layout of the forms, and the layout of the electronic data, differs from one country to another.

Goods supplied free of charge, goods supplied on long-term hire and the transfer of goods between branches of a corporation which are in different EC states all have to be declared.

 
   
VAT Registration Number

The option EC State Maintenance (ce_ec_state) allows you to enter your VAT registration number for each of the countries that you trade in and are registered for VAT.

 
   
Products and Services

Goods are identified in the EC Intrastat reports by an 8-digit commodity code defined in the Intrastat Classification Nomenclature which is used in all EC countries. The weight of the goods is recorded in kilograms and optionally a supplementary unit which is given for the commodity code. This information is stored on the Stock record for each item. The value of the goods involved in the transaction is recorded in local currency (exclusive of VAT).

If your system is set up to use both Intrastat Supplementary (system key ISUK2001 set to YES) and Intrastat Services then system key ISADDSERV can store a special commodity code value. This value can then be assigned to the services that are allowed to be included in Intrastat declarations. The value of such services on an invoice are then added to the commodity code of the highest value goods line on the invoice for inclusion in Intrastat declarations. Where positive and negative values are included on the same transaction the positive and negative values are handled separately.

Items sent for processing are recorded on the EC Intrastat report as the value of the goods. On their return, the value of the goods includes the cost of processing. This differs from the VAT returns, when goods sent for processing are not recorded, and goods returned from processing are shown as the value of the processing only.

 
   
Movement Between EC States

The despatch or arrival state is recorded for each transaction and printed on the report using the appropriate code. As well as the despatch/arrival state, the EC Intrastat report can optionally record the country of origin of the goods. Most countries use the 2-character ISO country codes, but some still use the 3-digit GEONOM codes.

The option EC State Maintenance (ce_ec_state) allows you to enter a code for each of the EU Member States and associated or dependent territories codes, and the country code of the EU Member States that trade in goods or services with other EU Member States.

The delivery terms and mode of transport are also recorded. The option:

  • EC Delivery Terms (ce_ec_delterm_maint) allows you to maintain the codes used to describe the terms of delivery in the movement of goods or services.
  • EC Mode of Transport Codes (ce_ec_transmode_mnt) allows you to maintain the codes used to describe the mode of transport at the frontier in the movement of goods or services.
 
Transactions

The EC Intrastat report records all EC transactions. A reference number for each transaction enables the user to cross-reference the movement on the EC Intrastat report with the relevant stock transfer or invoice.

A code is used to define the nature of the transaction (NoTC). It records whether the transaction was a sale, purchase, lease, credit note and so on. This information can be used to help manually reconcile the EC Intrastat report with the VAT returns. The option EC Nature of Transaction Codes (ce_ec_nature_maint) allows you to maintain the codes used to describe the type of transaction being declared.

These codes are theoretically common to all EC countries but there are some differences in interpretation.

Credit Notes may not be entered as negative figures. They can be included as an adjusted figure by specifying the relevant NoTC.

 
   
Distance Selling

A threshold limit is applied to the amount of trade that can be carried out with EC companies that are not registered for VAT in that EC state. This is done to overcome trade distortions brought about by the varying VAT rates used in the different EC states.

Once the threshold of sales has been reached, the company must register for VAT in the state that they are exporting to. They then charge VAT at the rate for that state. The situation could therefore arise where one company may have a VAT registration number for each EC state.

 
   
Triangulation

Triangulation is a term used to define the supply of goods which involves three or more parties where the goods are passed directly to the last person in the chain rather from party to party. Problems in recording these transactions arise because of the stipulation that, for VAT purposes, you cannot acquire goods in a country where they do not physically exist.

In the original procedures, if Company B is a UK business that orders their goods from a German supplier (Company A) and they ask that the goods be shipped directly to their customer in France (Company C), the UK company has to make their VAT return in the state in which the supplies were acquired. This cannot be the UK as the goods never existed in the UK. They have to register for VAT in either Germany or France. If they register for VAT in either Germany or France. If they register in France, they then have to charge the French company VAT according to the local taxation rates.

However, due to an anomaly in this legislation, it is still possible for Company B to quote their UK VAT registration number. In such cases the EC state of acquisition for VAT purposes is the UK. The Supplementary Declaration, however, has to be made in accordance with the physical movement of the goods, which in this case is France. As the goods did not physically enter or leave the UK, they are not recorded in the UK Intrastat report, but a return has to be made to the appropriate EC country of despatch and arrival.

For despatches, the despatch state is taken from the warehouse location and the acquisition state, for VAT purposes, is taken from the customer's VAT registration. The supply state is taken from the prefix for our VAT registration number.

When purchasing goods, the acquisition state for VAT purposes will be taken from the VAT registration number quoted to the supplier. For statistical purposes the arrival state will be taken to be the state in which the warehouse is located.

   
Simplification Directives

Recent simplification directives now provide for the intermediate supplier (Company B) to nominate its customer (Company C) in the EC country where the goods are to be received to account for any tax due there on its behalf. This means that the UK company (Company B) does not have to register for VAT in France.

For that intermediate supplier (Company B in the example), you will be required to indicate any triangulation processes separately on the EC Sales List by entering the appropriate process indicator for your country in the 'Process Indicator' field. The intermediary is not required to make any statistical declarations.

 
   
EC Intrastat Direct Entry

The direct entry option allows you to correct entries, complete fields that are not currently completed by the system, or to create transactions.

Note: If period currency rates are used and system key ISTRANRATE is set to YES, the currency rate used will be taken from the the transaction date rather than the current period (if they are different). For example, if the transaction date is 01/06/10 but the current period is 07, the currency rate is taken from that stored for period 06.

 
EC Intrastat Clear-Down

EC Intrastat Clear-Down deletes records, from the EC Statistics table, with transaction dates earlier than a specified date.

You should double check that all relevant Supplementary Statistical (Intrastat) Declarations have been made before running the Clear-Down.

 
National statistical agencies

Although there are common standards, each country has adopted Intrastat in a slightly different way, if you require further detailed information about the reporting requirements in an EC State, you should contact the relevant national statistical agency:

Austria

Statistik Austria

Belgium

National Bank of Belgium

Denmark

Danmarks Statistik

Finland

Tullihallitus

France

Direction nationale des statistiques du commerce extérieur

Germany

Statistisches Bundesamt

Great Britain

HM Revenue & Customs, Tariff & Statistical Office

Greece

National Statistical Service of Greece (NSSG)

Ireland

VIMA (VIES, Intrastat, Mutual Assistance)

Italy

Agenzia Delle Dogane

Luxembourg

STATEC, Service Intrastat

Netherlands

Centraal Bureau voor de Statistiek

Portugal

Instituto Nacional de Estatística

Spain

Departamento de Aduanas e Impuestos Especiales de la Agencia Estatal de Administración Tributaria(AEAT)

Sweden

Statistiska centralbyrån