Intrastat is a system that collects statistics on the trade in goods between European Union (EU) member states. Please note that supply of services is excluded from intrastat.
All VAT-registered business trading goods with other EU member states are supposed to make certain declarations and submit intrastat.
The value of your arrivals (purchases or imports) or dispatches (sales or exports) determines the amount of information required for intrastat returns. Current thresholds for arrivals are £1.5 million and £250,000 for dispatches.
Businesses with dispatches or arrivals of goods below the threshold must only declare the value in boxes 8 and 9 on their standard VAT return. It should then be returned to HM Revenue & Customs (HMRC) in the usual manner.
Businesses going beyond the threshold limit in either dispatches or arrivals (or both) must also submit a Supplementary Declaration(SD) to provide more detailed information. It needs to be stressed that while the other EU trade reporting mechanism known as the E|C sales list applies to both good and services, Intrastat does not apply to the supply of services. Where they form part of the invoice or contract price of the goods, the values should exclude any tax or duty but include any freight or insurance charges.
The deadline for intrastat is 21st day of the month following the period for which a transaction us being reported.
For example, September returns must be submitted by 21st October.
SDs must be submitted on monthly basis. Usually, a calendar month is used as a normal reference period and four digits must be used to show the month and year for which the transactions are being reported – (mmyy) e.g. 0920 for September 2020. However, in case a business is approved to use non-standard VAT periods, the reference period can be either the calendar month during which the goods arrive in or are dispatched from the UK, or the calendar month of the VAT tax point.
Businesses have the flexibility to choose the method that enables them to meet their intrastat requirements easily.
The threshold for Supplementary Declaration Period applies to the 12-month period from January to December and can change from one year to the next. Normally, any changes are announced in November and take effect from 1st January in the following year.
Obligations may change at the end of the year. However, this will depend on whether EU trade for the calendar year just ending has exceeded the threshold set for the following year. Similarly, SDs must be submitted throughout the following calendar year if it has exceeded the new threshold.
Also, if the threshold has exceeded during a calendar year, SDs must be submitted from and including the month in which the threshold was exceeded.
Arrivals or Dispatches carried out during the relevant period must be included in a Supplementary Declaration form. Along with this, the following information will also have to be provided in an SD form:
Delivery terms information on your SD may also have to be specified in case the value of your Dispatches or Arrivals exceeds £24 million. Please note that the Intrastat delivery terms threshold can also be altered annually just like the main SD threshold.
You must adhere to the following intrastat requirements if your business trades in goods in the European Union above the Intrastat threshold:
Please note that you can:
It may be important to mention that paper and electronic intrastat records must be kept for six years – as is the case for VAT.
If someone fails to submit the Intrastat SD or sends in some missing or incorrect data, they may be committing a criminal offence. Additionally, where SDs are frequently late, missing or inaccurate, penalties for late or inaccurate SDs may also be imposed. It is also worth mentioning that the penalty regime is a criminal one and could result in proceedings in the Magistrate’s Court.
Furthermore, businesses may be slapped with an administrative fine rather than facing legal action if a Warning of Possible Criminal Proceedings letter is received by it and it and it chooses to update its intrastat declarations. In case you still fail to make your declarations, you can be taken to the court.
Just fill in your details here if you need help dealing effectively with your Startups or wish to discuss other matters.
Lanop Business and Tax Advisorslove helping new startup businesses succeed. We provide comprehensive services from Company formation, support with raising finance, opening bank accounts, and developing business plans to monthly management accounts to help make key business decisions and meet all the requirements for a successful startup, and we have helped numerous companies.
Our experienced financial consultants proudly serve in Putney, Harley Street, and Battersea. Our physical offices are in Southwest and Central London. Whether you require financial consultancy, assistance with tax matters, accounting solutions, or strategic business advice, our experienced team is here to support you every step. We value the trust you have placed in us and are dedicated to fostering long-term relationships built on professionalism, reliability, and exceptional service.
Aurangzaib Chawla is a UK-based tax advisor and Managing Partner at Lanop Business & Tax Advisors.
With nearly two decades of experience, he supports individuals, landlords, and SMEs with proactive tax planning and compliance. Known for simplifying complex tax legislation, Zaib helps clients minimise liabilities while building sustainable, tax-efficient strategies for long-term success.
Aurangzaib Chawla is a UK-based tax advisor and Managing Partner at Lanop Business & Tax Advisors. With nearly two decades of experience, he supports individuals, landlords, and SMEs with proactive tax planning and compliance. Known for simplifying complex tax legislation, Zaib helps clients minimise liabilities while building sustainable, tax-efficient strategies for long-term success.
Let’s talk through your options, no jargon, no pressure.
Monday to Friday 9am – 6pm
To learn more about how we can help you grow your business, contact us today:
Monday to Friday 9am – 6pm
At Lanop, I am providing my services as the Managing Partner and Tax Specialist. My expertise includes helping medium and small-scale businesses in their accountancy and legal requirements, business start-up support, strategic review, payroll system review and implementation, VAT and tax compliance to cloud accounting. I am also an expert in financial reporting, identifying and monitoring risks, strategic business development, client retention, market acquisition and deals closure by carefully planning my sales cycle.
Enter Your Name & Email Address for a Free Consultation
