Insights
VIES and INTRASTAT returns have commonly been disregarded by traders in the past. However, Revenue are cracking down on these returns, amongst others, more and more. While they do not generate any tax liabilities, the returns can affect a client’s tax clearance cert and their standing with Revenue in terms of the non-filing of returns and may have a bearing on the current debt warehousing schemes or phased payments plans that some traders might have with Revenue. It is therefore important that these returns are submitted to Revenue where you have an obligation to do so.
Why are VIES and INTRASTAT returns required?
Since the abolition of fiscal controls on the movement of goods within the EU from 1 January 1993, a mechanism had to be put in place to enable EU Member States to record data in relation to the movement and value of such goods.
Both returns/statements are information exchange returns that track the supplies of goods and/or services within the EU. VIES statements are also used to combat fraud and authenticate the VAT registration numbers supplied by customers in one EU Member State to a supplier in another. We have set out below; the requirements for each to be required to be submitted to Revenue.
VIES Returns
VAT registered entities are required to submit VIES returns where they dispatch Goods to VAT registered persons in the other EU Member States or Services to VAT registered customers in other EU Member States where the service is zero-rated and the customer is required to self-account for VAT in their country of residence. There is no threshold for the filing of VIES returns, meaning a VIES return is required if there is any of the above provided by a VAT registered entity.
A Vies Statement is required to be filed on a quarterly basis (by the 23rd of the month following the end of the period) unless the trader opts to file monthly. A trader must file monthly where the value of the supplier’s supplies of goods to the other EU Member States exceeds €50,000 in a calendar quarter. The VIES statement can be filed online using Revenue’s Online Service (‘ROS’) and should include the VAT registration number of each EU Member State and the value of sales to that customer. The penalty for not submitting VIES returns when they are due can be up to €4,000.
INTRASTAT Returns
The Filing of an INTRASTAT is only in respect of the movement of goods. VAT Registered entities are required to submit INTRASTAT returns if they dispatch goods to other EU Member States (and Northern Ireland) and the value of those goods exceeds the annual threshold of €635,000. Where the value of the goods dispatched from Ireland exceeds the threshold, detailed INTRASTAT returns (“dispatch INTRASTAT returns”) must be filed monthly. If below this threshold, the details can just be included on the VAT3 returns as normal (boxes E1 & E2).
In the case of goods acquired from other EU Member States (and Northern Ireland) the annual threshold is €500,000. Where the value of the goods exceeds the threshold, the appropriate detailed monthly INTRASTAT returns (“arrivals INTRASTAT returns”) must be filed. If below this threshold, the details can just be included on the VAT3 returns as normal (boxes E1 & E2).
Where a trader is required to submit INTRASTAT returns, they are due for submission by the 23rd of the following month.
Some traders may not have to file any INTRASTAT returns, some may have to file in respect of dispatches of goods, some may have to file in respect of acquisitions of goods and some may have to file in respect of both dispatches and acquisitions.
The information required on an INTRASTAT return includes the following:
• The eight-digit commodity code of the goods concerned (obtained from the EU 2019
Combined Nomenclature – the Combined Nomenclature is updated annually).
• The invoice value of the goods and the statistical value, the latter being the invoice value as
adjusted for carriage, insurance, and freight.
• The delivery terms (ex-works, C.I.F. etc).
• The nature of the transaction (sale, lease, etc).
• The quantity of the goods (net mass and for some commodities, supplementary units).
• Details of the country of consignment of the goods or the destination of the goods as
appropriate, as well as the country of origin of arrivals.
• The mode of transport used.
A more detailed INTRASTAT return is required where arrivals exceed €5 million, and dispatches exceed €35 million annually.
The penalty for not submitting INTRASTAT returns when they are due can be up to €4,000.
If you have any queries in respect of any of the above, please feel free to reach out to any of our tax the team who would be happy to assist.
Carl Donnelly
Head of Tax
Cronin and Company