The UK left the European Union on 31 January 2020. As part of its Brexit Withdrawal Agreement, it will remain inside the EU VAT regime until 31 December 2020. During this time, there will be no changes to UK VAT rules, treatment of transactions or filings. Read Avalara’s free 2020 Brexit guide for details on Brexit VAT and customs issues.
In addition to VAT returns, foreign companies trading in the UK may be required to complete statistical reports, ‘Intrastat’, on the movement of goods across the national borders. This can include sales to other companies as well as the movement of goods by the same company. The authority responsible for the implementation of Intrastat reporting rules in the UK is HMRC.
When do UK Intrastat reports have to be completed?
If resident or non-resident companies move goods across the UK national border to or from other EU countries, there may be a requirement to complete monthly Intrastat reporting.
Intrastat filings list the goods sent out of UK, ‘dispatches’, as well as goods brought into UK, ‘arrivals’. It is a system introduced in the UK following the 1993 launch of the EU free trade market since customs borders and reporting were withdrawn. Intrastat does not apply if the goods are coming in from outside of Europe (‘imports’) or being sent out of the EU (‘exports’).
What are the UK Intrastat reporting thresholds?
Intrastat returns, or supplementary declarations (SDs), need only be completed once the reporting thresholds are exceeded. The threshold for UK Intrastat arrivals is £1,500,000. The threshold for UK Intrastat dispatches is £250,000.
British Intrastat thresholds (per annum)
What information is included in a UK Intrastat filing?
Each movement of goods across the UK national border to another EU country must be listed.
This shipment lists should include the trade classification, value, quantity, weight, commodity code and country of arrival or dispatch.
When should UK Intrastats be filed?
Intrastat Supplementary Declarations should be submitted electronically through the HMRC website within 21 days from the end of the month to which they relate.
There may be minor infringement penalties for late filings.
Need help with your UK VAT compliance?
Researching UK VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.
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