Intrastat Reporting Explained
Latest Changes In Intrastat: Tips and News
What is Intrastat reporting?
Conceptualised in 1993, Intrastat reporting was introduced as a substitute for customs declarations making it the sole source of trade statistics for countries of the European Union. In its simplest form, Intrastat represents a collection of data that provides analysts sufficient statistics on the goods trade between member nations.
- Arrivals: It includes acquisition of goods, their purchase and import. This has to be declared in Box 9 of the VAT Return.
- Dispatches: Deals with exports, sales and disposal. This has to be declared in Box 8 of the VAT Return.
How it works?
Every registered business trading goods within the European Union framework is required to declare the value of the goods in certain forms. This is called Intrastat reporting. Every year, an Intrastat exemption threshold is declared by member nations. For all transactions exceeding this threshold value, traders have to file a monthly Intrastat submission declaration. This submission is then forwarded to HM Revenue and Customs (HMRC) for further processing.
Significance of Intrastat reporting
Intrastat returns are crucial for the member nations because this gives them a clear idea regarding the health of their economy. For instance, Intrastat returns can indicate what the general trend among traders in Birmingham is. Similarly, Intrastat data collated from submissions of traders based in Manchester or Belfast can be used by the authorities to introduce adequate changes to improve the business environments in these cities. The best example of such corrective measures as a result of decoding intrastat codes is the timely interest changes by the Bank of England.
Intrastat returns- how and when?
Although most traders and businesses dealing with goods know that filing Intrastat returns is essential for the smooth functioning of their businesses, the paperwork and maintenance of records may get a bit perplexing at times. The HMRC is very particular on the veracity of such submissions and insists that one makes accurate submissions. Such submissions are to be made by 21st of every month. This is not a problem for big traders, because they have in-house accountants and bookkeepers who are adept at this sort of thing. But, the small and medium traders out there cannot afford such luxury. The only option left for them is to hire the services of a professional assistance, to get help with maintaining their books and file Intrastat returns on a monthly basis.
Intrastat 2016- What to expect?
The concerned authorities of the European Union declare the intrastat threshold for various member nations every year. This threshold is often a matter of much speculation among various agencies because this determines the health of a country’s economy. As per latest information available, it is believed that countries like Germany, Finland, Ireland and Latvia are all set to increase their thresholds. On the other hand, in a bid to usher in more traders, Denmark, Netherlands and two other countries are contemplating a reduction in the intrastat threshold value. The exact figures will soon be made available by the European Union.