VAT-registered EU businesses that trade goods with other EU member states are required to provide details on these transactions. This is reported through the Intrastat declaration.
In this blog post, I will explain what Intrastat is, talk about the upcoming changes and explain what this means for your company.
Intrastat requirements and upcoming changes
Intrastat declarations are used to report the movement of goods within the European Union. It is mainly used for statistical purposes on EU trade but also in some way to check on potential VAT fraud. Intrastat filings are country-specific but the general data, such as cross-border arrivals and dispatches of goods need, to be included for every country. Detailed information is required for each transaction, including a description of the goods, commodity code of the goods, quantity, value of the goods, …
As of January 1 2022, some additional data will be required for the intra-community supply in the Intrastat declaration. Two additional data elements need to be added, namely:
- The country of origin of the goods
- The Identification Number allocated to the partner operator in the Member State of destination
The most important reason for these changes is that each National Statistical Authority should be able to use the export data received from another EU Member State to compile its import statistics. In the past, already some changes regarding the Intrastat declaration took place. With the Brexit f.e. we saw that this additional required data is very relevant and of importance to provide a correct Intrastat declaration.
There are Member States of the EU, where these two additional data elements are not provided in the Intrastat declaration yet. Here, the suppliers will have to start reporting them at the latest when the EU Regulation 2019/2151 on European business statistics becomes applicable.
To compensate for this additional data need, the National Statistical Authorities can exempt smaller exporters from reporting intra-EU trade data.
What does this mean for your company?
You should always be aware of the Intrastat requirements of the countries you are active in. Regularly checking the Intrastat regulations is crucial to stay up to date regarding changes in the declaration. A tool to help you is the SAP overview notes regarding Intrastat. In these notes, you can find a summary of all the information you need to make your declaration compliant. Another important thing is to make sure you have the right master data in your SAP system. Having the correct master data is crucial to extract the data needed for the two additional fields required in the future.
How PIKON can help you
At PIKON we have set up a Competence Center for Legal Requirements. Here our consultants investigate and follow up on country-specific legal requirements all over the world. We are a strategic partner who ensures that your SAP system and business processes meet different country-specific legal requirements in the long run.
Regarding the Intrastat declaration, PIKON can assist in making sure your company is compliant with the regulations. We will check the OSS notes and organize your SAP system in a way that all the necessary data can be extracted.
If you have any questions on the Intrastat declaration, do not hesitate to request a web meeting or leave a comment in the comment section below. We are happy to help and will come back to you as soon as possible.
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