Intrastat Background

6 years 2 months ago #225 by ricorn
Intrastat Background was created by ricorn
Each Member State of the European Union compiles its own external trade figures, in other words statistics on its cross-border movements of goods. A distinction is made between trade of goods between EU Member States (Intrastat), on the one hand, and trade with countries that do not belong to the European Union, on the other, (Extrastat).

The transactions between EU Member States are called “intra-Community purchases and deliveries” as regards to the value added tax code, and are labelled “arrivals” and “dispatches” for statistical purposes. The names “imports” and “exports” remain used for movements with third party countries, as well as for describing external trade in general.

The entry into force, on 1 January 1993, of the Single European Market opened up internal borders and abolished customs formalities. However, statistical obligations remain in place.

Intrastat is the monthly filing regime for companies sending (dispatches) and receiving (arrivals) goods across EU member countries’ national borders. It enables countries to monitor intra-community supplies and general trade.

All those subject to VAT have to complete a declaration themselves, regarding their intra-Community trade, unless this does not exceed a threshold calculated on an annual basis. This is the Intrastat declaration. This declaration includes all data regarding goods arriving from other Member States and goods being sent to other Member States.

It is important to note that if a business fails to submit the Intrastat reports within the legal time period, administrative or legal sanctions may be imposed.

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