Intrastat

Intrastat is the name given to the system for collecting statistical information on the trade of goods between EU countries. Information is collected from 2 sources. Firstly the VAT return in Boxes 8 and 9 which show details of “dispatches” these are goods supplied and “arrivals” these are goods received from the EU, and secondly, supplementary declarations. There are thresholds below which a business has no requirement to complete supplementary declarations.  These vary each year but in 2010 the thresholds were Dispatches £250,000 and Arrivals £600,000.

The EU Sales List records the details of goods, and from 01 January 2010, services sold to VAT registered businesses in other EU Member States where no VAT is charged by the UK business under the “Place of Supply” rules. Completion of Box 8 on the VAT return will trigger the necessity for the completion of the EU Sales List.

Penalties will likely apply if your supplementary declarations are persistently late, missing, inaccurate or where only part of a month’s trade is declared. The penalty regime is a criminal regime and could result in proceedings in a Magistrates Court. However, there may be opportunities to compound any proceedings this may involve the offer of administrative fine in lieu of any Court proceedings. However, payment of such a penalty does not remove the obligation to submit the declarations for the period in question.

The rules are complex and may seem overly burdensome for what appears to be merely a statistical collection of facts. However, we are happy to help and can offer training in the completion of the declarations and the various nuances of trading in the EU. Topics might cover, Repairs and Processing, Estimates and temporary movements, goods in transit, sale or return, credit notes, inter-company transfers, software and hardware, stage payments, staggered consignments, call of stock and consignment stock, Inward Processing Relief and triangulation.”

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