Posted by: istewart | August 7, 2009

Intrastat Module – Intrastat explained


Background.  Up to end 1992, all imports and exports of goods between EU (European Unoin) countries were recorded on the SAD (Single Administrative Document)…This had to be completed by companies for each and every consignment of goods they imported or exported to and from other EU countries.
In 1993, the Single Market was introduced in the EU, and part of the removal of barriers to trade that this heralded, was the removal of the SAD document requirement.
The SAD was a key statistics and Sales Tax tracking document, so to replace it the concepts of Intrastat and VIES (more later) were introduced.
Companies whose exports or imports exceed a certain threshold, must submit bi-monthly returns detailing their movement of goods within the EU. This is called the Intrastat return.

To clarify:  Intrastat applies to Imports and Exports within the E.U. only.   EU traders with imports or exports exceeding certain thresholds must submit bi-monthly intrastat reports. Under these thresholds, summary data is required to be reported, as in the case of Ireland, all VAT registered traders operating within the EU must complete Boxes E1 and E2 on their VAT 3 returns regardless of the value of their imports / exports.

The thresholds are currently:
 - Imports from other E.U. member states exceeding €191,000 annually
 - and/or exports to other E.U. member states exceeding €635,000 annually.
A uniquely european module, intrastat.
A Declarant? – a company or an office that makes an intrastat return. If your company has offices in a number of european countries, each office might have to make an intrastat return. If you decide to just use a single declarant, all Intrastat related information in Dynamics GP will attach to that one declarant, so all information is included on one Intrastat return. If you want to use multiple declarants in GP, you must use the Intrastat Map Sites window, to map a declarant to an Inventory Site. Now movement of goods into and out of this site is collated on a seperate report for the linked declarant.
An Agent? – A person who submits and intrastat return on behalf of a company. Typically in GP, an Agent is linked to a Company Address ID. Returns can be submitted electronically or on a manually completed form. Dynamics GP provides for both scenarios.

There is quite a bit of set up required to implement the Intrastat module, but the module does exactly what it is designed to do - automate the production of Intrastat returns – so any time spent in set up is well worth it. Users need to set up shipping codes, transaction codes etc. etc.  in order to analyse each movement of goods (POP, SO, Inventory) as per the Intrastat returns exacting requirements. Using the distribution series is not a requirement though, Intrastat data can also be recorded on RM and PM transactions.

Ian Stewart
Supporting US Corporations with a European presence.
Local knowledge, local timelines, local GP talent.
Genesys Financial Systems (Ireland)
Microsoft Gold Certified Partner
http://www.genesys.ie
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Responses

  1. Hi Ian

    This is really good article

  2. Thanks for the compliment! An article on VIES is pending,which may be of interest.

  3. Very good. We see module and wonder. Looks complicated, but makes sense now.

  4. [...] of the functionality required to operate in the EU is included ‘out of the box’ such as Intrastat Reporting (including electronic files), VAT Daybook including VAT Return templates, Reverse Charge [...]

  5. [...] EU Intrastat reporting obligations. [...]


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