From 1 January 2010, all VAT registered Traders who sell to VAT registered traders in other EU countries:
- or services subject to Reverse Charge VAT in the customers country
have to submit details of these sales on the EC Sales List (ESL).
The data from the EU Sales List (ESL) is used by member states to make sure that VAT has been correctly accounted for.
What data has to be submitted?
Your Company Name, Address and VAT registration number.
For each Sale:
- The Customers country code.
- Their VAT Registration number.
- The value of the sale (net of VAT) in your home currency.
- The relevant code in the Indicator Code box – Empty = Goods, 3 = services, 2 = Tri-angular supply of goods.
When do I submit this data?
In 2009 it was Quarterly, and had to be submitted within 6 weeks of the end of your quarter.
From 1 January 2010, it becomes monthly! With an exception (it’s the EU!!) – Especially for 2010 – if your total quarterly sales value is less than 70,000 sterling, you can submit quarterly returns….but once you go over this in any quarter, that’s it – you come under the monthly reporting.
However, there is provision in the EU legislation to allow member states amend this reporting cycle in order to remove administration burden on organisations. Basically, despite all the rules, you need to verify with your local tax authority what the reporting frequency is for your country.
How do I submit?
- On a paper form – filled in and snail mailed.
- On line (if available in your region) – bulk load type uploads or XML documents.
- In the UK, through Electronic Data Interchange (EDI) using the EDIFACT standard.
What’s this got to do with this blog??
Microsoft Dynamics GP has inbuilt functionality to handle your ESL reporting requirement automatically. This functionality is part of the VAT Daybooks and Enhanced Intrastat modules. Once set up, the tracking of this information is automatic, and the EC Sales List report is produced with ease. Reports >> Company >> Taxes >> EC Sales List. Most importantly each customer must have Country Code assigned.