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.

Supplementary Declarations (SDs)

A Supplementary Declaration (SD) is a post-shipment declaration that provides information used to control and work out duty for export and import consignments, as well as to gather statistical data on international trade.

 SDs are used to gather information that provides statistics for movements of goods within the EU.

Import and export SDs are used for trading outside the EU. Use simplified import and export SDs to process the financial aspects of customs procedures.

Intrastat

VAT-registered businesses that trade goods within the EU over the current threshold must submit an Intrastat declaration each month.

If your business exceeds the threshold for Arrivals of goods (purchases) but not for Dispatches (sales), you only have to complete SDs for Arrivals. If your Dispatches exceed the threshold, you only have to include Dispatches on your SD. If both Arrivals and Dispatches exceed the threshold, you must submit one SD for each. 

Once you have reached either threshold, you must submit SDs until the end of the year. You only have to submit SDs the following year if your trade for the calendar year just ending exceeds the new threshold. The threshold is reviewed annually.

Supplementary Declarations for import.

When you import goods from outside the EU, you are required to submit an SD so customs can work out how much you owe them. Traders may use SDs within Customs Freight Simplified Procedures (CFSP) so customs can determine how much duty and tax is payable, read more about CFSP in Notice 760.

Intrastat SD period

Intrastat statistics are collected on a monthly basis and it’s important you report the data in the correct period.

If your level of trade in goods with other EU member states reaches one or both of the Intrastat thresholds you must submit your SDs from the first day of the month in which the threshold is exceeded. You must continue to submit SDs until the annual value of your trade falls below the next year’s threshold, which is subject to change from time to time.

The period is the month and year (mm.yy) to which the declaration refers eg. 12/12 for December 2012.

The due date for submission is now the 21st day of the month following the period for which you are reporting transactions. For example, Intrastat data relating to April 2012 would have been due by 21 May 2012.

Question:
What are Supplementary Declarations and when do you use them?

SDs are used to gather information that provides statistics for movements of goods within the EU.

Import and export SDs are used for trading outside the EU. Use simplified import and export SDs to process the financial aspects of customs procedures.

DEFINITION OF THRESHOLDS AND COMMENCEMENT OF THE OBLIGATION TO PROVIDE INFORMATION

DEFINITION OF THRESHOLDS

Thresholds is the Minimum or maximum value (established for an attribute, characteristic, or parameter) which serves as a benchmark for comparison or guidance and any breach of which may call for a complete review of the situation or the redesign of a system.

For each calendar year, every EU Member state shall define a statistical threshold limit based on the value of the annual arrivals and dispatches.

In 2015 the threshold value of the obligation to provide information is EUR 500,000 for arrivals and EUR 500 000 for dispatches in Finland.

COMMENCEMENT OF THE OBLIGATION TO PROVIDE INFORMATION

Once a month the Tax Administration provide the customs with data on the total values of company-specific sales and acquisitions within the internal trade on which basis the commencement  of the obligation to provide information is defined during the statistical year.

- If the value of the company's acquisition during one calendar year exceeds 500,000 EUR, the company is obliged to submit statistical declarations on its arrivals only.

- If the value of the company's deliveries during one calendar year exceeds 500 000 EUR, the company is obliged to submit statistical declarations on its dispatches only.

- If the threshold value is exceeded in both intra-community acquisitions and deliveries, the company is obliged to provide information’s on both arrivals and dispatches.

WHO DECLARES THE GOODS DELIVERIES IN INTRASTAT

-          The primary responsibility for providing the information lies with the party having incurred the contract concerning the acquisition (arrivals) or delivery (dispatches) of the goods.

 

The Secondary responsibility lies with the consignee of the goods when arrivals are concerned, and with the consignor when dispatches are concerned, or with the party retaining the goods to be delivered or dispatched.

 extracts from Intrastat in Finland 2015. TULLI (Customs)

Questions:

What is threshold?

This is the limit declare by each member states (EU Member States) based on the value of annual arrivals and dispatches.

What is the threshold for (Company’s) in Finland for the year 2015?

The threshold for company’s in Finland for the year 2015 is 500,000 EUR for Arrivals and 500 000 EUR for Dispatches.

When is a company obliged to provide information on Intrastat?

A company is obliged to provide information on intrastat if its annual arrivals or dispatches exceeds the annual threshold as set by the state.