Describing Intrastrat Reporting

Objectives

After completing this lesson, you will be able to:

  • Describe Intrastat Reporting

Instrastat Reporting

What is Intrastat Reporting?

Intrastat is a statistical reporting system used in the European Union (EU) to collect information on the movement of goods between EU member states. It is a means of monitoring and analyzing trade flows within the EU's single market. Intrastat is implemented in each EU member state and requires businesses to provide detailed data on their intra-EU trade activities

Who Does the Intrastat System Apply To?

The Intrastat system applies to businesses exceeding certain thresholds for goods dispatched (sales to other EU member states) and goods acquired (purchases from other EU member states). The thresholds vary by country.​

What are Businesses Obligated to Report Under Intrastat?

Under Intrastat, businesses are obligated to report specific details about their cross-border transactions, including the commodity code, value, quantity, and partner country of the goods traded. These details enable national statistical agencies to gather data on intra-EU trade and compile statistics on imports and exports within the EU.

What is the Information Gathered Through Intratstat Used For?

The information collected through Intrastat is used for various purposes, such as economic analysis, policy-making, and monitoring trade patterns within the EU. In addition, it helps governments and organizations gain insights into market trends, identify potential imbalances, and assess member states' economic performance.

It's important to note that Intrastat is distinct from customs declarations or VAT reporting. Intrastat focuses solely on statistical data collection, customs declarations deal with the movement of goods across customs borders, and VAT reporting concerns the taxation of goods and services.

What are Businesses Subject to Intrastat Requirements Responsible For?

Businesses subject to Intrastat requirements are responsible for accurately and timely submitting the required Intrastat declarations to their respective national statistical agencies. These declarations are typically submitted monthly or quarterly, depending on the country's regulations.

In summary, Intrastat is a reporting system used in the EU to collect statistical data on the movement of goods between member states. It helps monitor intra-EU trade and supports the analysis and planning of economic activities within the single market.

The figure lists the EU Intrastat member states.

Intrastat Versus Customs Declarations Versus VAT Reporting

IntrastatCustoms DeclarationVAT Reporting

Intrastat focuses solely on statistical data collection​ on trade between member states.

Customs main focus is on product legitimacy and its import duties (and import VAT) on​ goods crossing the EU​ customs border

VAT Reporting focuses mainly on taxation of goods and services within a member state

Intrastat Reporting Process Flow

  1. Create Declaration: Company Code/Country/Period/Direction (Arrival/Dispatch)
  2. Select Intrastat Relevant Transactions from ERP system-driven process
  3. Correct and Complement Transactions: Missing or inconsistent data elements
  4. Add/Delete Transactions Manually (if applicable)
  5. Generate Report File: Country specific format
  6. Upload Report File: Country specific portal

Each separate company code ( = independent accounting unit) must submit an Intrastat report monthly for each country in which this company code has plants from which goods are delivered into EU-countries (SD side) or into which goods are received from an EU-country (MM side). If a company code has plants abroad (in countries relevant for Intrastat), then a separate selection must be started for each of these countries.

Example: XX Company Germany has, in addition to its local plants, plants in France and Austria. For the company code of XX Company Germany, a total of three selections must be started: one for each country.

Intrastat Declarations

In the Manage Intrastat Declarations app, data is transferred directly into Intrastat declarations through a streamlined and automated process. Here's an overview:

Initial Data Load
The process begins with the base data being loaded into the system. This data often comes from multiple sources within the organization, including sales, purchases, and inventory records. These records represent the trade between member countries of the European Union.

Data Verification and Classification
The loaded data is then reviewed and categorized in accordance with the rules and regulations set by Intrastat. This could include categorizing items based on their commodity code, nature of transaction, and the country of origin/destination.

Direct Data Transfer
Once the data has been verified and correctly categorized, it is directly transferred into the Intrastat declarations. This means that the data becomes part of the official record that is reported to Intrastat.

Final Review
After the data has been transferred, there is a further opportunity for users to review the Intrastat declarations before they are filed. This allows for any errors to be corrected and for additional data filters or selection criteria to be applied if needed.

Submission
Once the Intrastat declarations have been thoroughly reviewed and finalized, they can be submitted directly through the Manage Intrastat Declarations app. This eliminates the need for physical paperwork, making the whole process more efficient.

The Manage Intrastat Declarations app plays a key role in ensuring that companies meet their regulatory reporting obligations in a timely and accurate manner.

Manage Intrastat Declaration

  • In the Manage Intrastat Declarations app, users have the ability to specify criteria which will limit the items that are loaded for processing. Essentially, these criteria act as filters.
  • One such type of criteria can be to select only the items that have been flagged as Incorrect. Users can therefore focus on reviewing and rectifying these erroneous entries, helping to improve the accuracy and efficiency of their processes.
  • Users can also base their selection on the specific legal unit associated with a given item. This gives them the chance to narrow down their search and manage items associated with that particular entity.
  • Another similar feature allows for the selection of items related to a specific billing or purchasing document. This can be particularly useful for accountants or finance teams when checking the consistency and accuracy of transactions.
  • In addition, it's also possible for users to select only those items that have been manually created, separating them from those that have been automatically generated. This can be beneficial in identifying any potential human errors in manually inputted data.
  • Lastly, the app also includes an option for users to select a maximum certain number of items for processing. Users may choose to specify a particular number to help manage their workload or to make their tasks more manageable. For instance, they may want to check only a subset of items at a time rather than all.

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