Intrastat Reporting - Who Has to Submit?
Most European businesses that trade within the European Union (EU) are obliged to submit Intrastat declarations as part of their Intrastat obligations, but what exactly is Intrastat and is it something you as a trader need to worry about?
What is Intrastat in Intra EU Trade?
Intrastat is a system used by the EU to collect information and statistics about the movement of goods and cross-border transactions between EU Member States. It was introduced in 1993 to replace customs declarations for trade between EU countries. Intrastat is designed to simplify and harmonize the collection of trade data across the EU and to provide accurate and timely statistical data for policy-making and economic analysis.
Under the Intrastat system, businesses that trade goods with other EU member states are required to submit monthly reports to their national customs authorities. The reports contain information on the value, quantity, and nature of the goods traded, as well as the countries of origin and destination. Intrastat enables the monitoring and analysis of intra-EU trade flows within the EU's single market. Intrastat reporting is used to compile trade statistics for each member state, which are then aggregated to provide a comprehensive overview of trade flows within the EU.
Intrastat is mandatory for businesses that exceed a certain threshold of trade with other EU Member States, which varies from country to country. Businesses that do not meet the threshold may still be required to submit reports if they’re selected for a survey or audit by the national customs authorities.
How to submit an Intrastat declaration
If you’re a business that trades goods with other EU countries, you may be required to file Intrastat declarations. The Intrastat report is a form that provides information about the goods you’ve bought or sold to other EU Member States. The purpose of this Intrastat return is to provide statistical information to the government about the trade of goods between Member States.
These are the steps you must follow when submitting an Intrastat declaration:
Step 1: Determine if you need to submit an Intrastat declaration
Intrastat declarations are required by law for businesses that exceed a certain threshold of trade with any EU member state. Each country has different thresholds, so you should check with the relevant tax authority to see if you’re required to submit an Intrastat declaration. Typically, businesses that exceed the threshold must submit declarations on a monthly basis.
Step 2: Collect the necessary information
To submit an Intrastat declaration, you’ll need to collect information about the goods you’ve bought or sold to other EU countries. This includes:
- The commodity code for the goods
- The description of the goods
- The value of the goods
- The quantity of the goods
- The country of origin of the goods
- The destination country of the goods
- The country code for the goods
- The shipping costs of the goods
You may also need additional information depending on the specific rules of the country.
Step 3: Complete and file Intrastat declarations
Complete the Intrastat declaration by including all the necessary information requested. Submit it to the appropriate statistical office. This can usually be done online through your national tax authority’s website. The declaration will ask for the information you have collected, as well as any additional information required by your country. Once you’ve completed the Intrastat declaration, you must submit it to your national tax authority.
Step 4: Keep records
It’s important to keep records of all the Intrastat declarations you submit, as well as any supporting documents. You may need to refer to these records later if you’re audited by the tax authority or if you need to make corrections to your Intrastat return. Accurate record-keeping is also crucial in preventing potential VAT fraud.
What is an Intrastat commodity code?
The Intrastat commodity code is a system used to identify the goods that are traded between countries within the European Union (EU). It’s an eight-digit code used to classify and record the movement of goods from one EU country to another.
This commodity code plays an important role in international trade and helps to ensure that all countries are able to accurately track and report the flow of goods across borders. Commodity codes help businesses comply with customs regulations, ensuring that they can move their products quickly and efficiently.
Who is exempt from Intrastat reporting in EU member states?
Intrastat declarations are mandatory for companies that export or import goods to and from the European Union. However, there are certain situations in which an Intrastat declaration is not required.
Companies exempt from submitting an Intrastat return include those with a low trade value, those who trade outside of the EU, and those whose goods do not pass through customs. In addition, companies whose turnover is below a certain threshold may also be exempt from filing an Intrastat declaration.
It's important to understand the rules and regulations surrounding Intrastat reporting in order to ensure compliance with the law. Knowing who is and isn't exempt from the Intrastat system can help businesses save time and money by avoiding unnecessary paperwork and penalties for non-compliance.
Conclusion
Intrastat declarations are an essential requirement for the majority of businesses that trade with other EU Member States. Submitting accurate and complete Intrastat declarations in a timely manner can be burdensome, though.
To find bespoke solutions for your business, including help with Intrastat returns, email us at mycompliance@taxually.com and we'll arrange a free call with one of our experts.
Frequently Asked Questions
What is Intrastat and why is it necessary?
Intrastat is a statistical system used by the European Union to collect information on the movement of goods between member states. It is necessary to provide accurate trade data for economic analysis and policy-making.
Who is required to submit Intrastat declarations?
Businesses that trade goods with other EU member states and exceed a certain trade threshold set by their national authorities must submit Intrastat declarations.
What information do I need to include in an Intrastat declaration?
An Intrastat declaration typically requires details such as the commodity code, description, value, quantity, country of origin, destination country, and shipping costs of the goods traded.
How often do Intrastat declarations need to be submitted?
Intrastat declarations are generally submitted on a monthly basis, although the frequency can vary based on the trade volume and specific requirements of the national authorities.
What is the threshold for Intrastat reporting?
The threshold for Intrastat reporting varies by country and is set by each national tax authority. Businesses must check the specific threshold applicable in their country to determine if they need to report.
How do I determine the commodity code for my goods?
Commodity codes can be determined by consulting the Harmonized System (HS) or Combined Nomenclature (CN) databases, which provide a standardized classification for goods traded internationally.
What happens if I fail to submit an Intrastat declaration?
Failure to submit an Intrastat declaration can result in penalties or fines imposed by the national authorities. It is important to comply with reporting requirements to avoid legal and financial consequences.
