Intrastat classification is becoming ever more important for intra Community trade. When certain value thresholds are met - £250,000 dispatches or £1,500,000 arrivals in any 12 months, a company becomes liable to submit monthly declarations ("supplementary declarations (SDs)") of all future arrivals or dispatches for a minimum period of 12 months from the date of notification. The information required is detailed and a new entry will be made for each dispatch/ arrival.

Whereas, previously, the Intrastat regime was closely linked to VAT and often loosely enforced, it is now being looked at to support other taxes, eg environmental levies and as such, close attention is being paid to correct classification.

If your business has passed an Intrastat reporting threshold, you will need to ensure that your products or inputs are all correctly classified (classification changes and so this should be subject to periodic review). Although the same codes will apply throughout the EU, you are responsible for ensuring that the correct code is used and should not therefore simply rely on the code advised by your supplier.  You will then need to register to use the HMRC Intrastat system and set up your reporting systems accordingly.

Intrastat enforcement is criminal and mistakes or non compliance can have serious business consequences.

4 Eyes Ltd has considerable expertise in Intrastat classification. We can assist firms throughout the EU in this. We also operate Intrastat reporting on behalf of our clients, thereby significantly reducing the compliance burden on them.