Intrastat Methodology

It’s the system used in collecting statistical records of movement of trade in goods within European Union states, it replaces customs declaration and its been in operation since 1993. The data are published on monthly, quarterly and annually and the requirements are similar in all European Union member states. Intrastat deals only with physical goods and does not include service and must be declared as they cross borders of individual state. The statistic is quite essential to determine country’s balance of payment, the information help the government department in many ways which include the following:

- It helps to determine the capability of the nation manufacturing industries and generates new trade area.
- It helps to detect the VAT fraud that is, it helps in comparing intrastate record and VAT declarations.
- It can be use in determining how foreign products are penetrating into the local markets
- It helps government to know the movement of goods out the border and provide transportation infrastructures.

Information provided by intrastat helps national government of member states make or take decisions that will impact the daily life and wellbeing of citizens of European Union member states. The statistical information provided by intrastat taking Finland as an example, will be supplied to European Commission, the European Central Bank and United Nations bodies such as International Monetary Fund and in return the all gathered information might be used in monitoring national economy of the member states.


Questions and answers.

What are the impotance of Intrastat?
Intrastat helps individual European Union states to collect information on movements of goods and it helps the state to provide necessary ammenities to improve logistical movement.
It helps avert VAT frauds
Intrastat data are not just important to governmetal agencies but also businesses, it helps business owners to assess market shares, to look for gap in market and allows development of new markets.

Does data of goods sold via internet involved in the intrastat record?
Yes the physical goods ordered and sold on internet but delivered through conventional way (that is via mail) should be declared in an intrastat declaration. But goods ordered, sold and delivered via internet are considered to be service these goods don't require declaration because intrastat are required to take statistics of physical goods.