Foreword

This notice cancels and replaces Notice 60 (June 2018). Details of any changes to the previous version can be found in paragraph 1.2 of this notice.

1. Introduction

1.1 What this notice is about

This notice provides a general guide to Intrastat for businesses trading in goods with other member states of the European Union (EU).

It contains detailed instructions on the arrangements for providing the information required, including areas where special arrangements apply.

1.2 Changes from previous edition

The reference to minimum ‘compound’ fines of £250 for each offence has been removed from paragraph 3.4.

1.3 Who needs to read it

You should read this notice if you’re involved in the movement of goods between EUmember states and are liable to submit Intrastat Supplementary Declarations.

1.4 How to get free information and help

This notice provides general guidelines and information on some special arrangements. If you cannot find your answer here, you can call the Excise helpline.

Read more about Intrastat.

Information about Intrastat is also available from the uktradeinfo website.

If you would like early notification of news about Intrastat, including any changes or detailed information sheets about particular subjects, you can subscribe to a free email alert service ‘uktradealert’ – read Section 23.

Otherwise you can write to HMRC at:

2. Intrastat

2.1 An explanation of Intrastat

Intrastat is the name given to the system for collecting statistics on the trade in goods between EU member states.

The requirements of Intrastat are similar in all EU member states.

Intra-EU trade statistics are compiled from information provided by those businesses required to provide Intrastat declarations and estimations made using information on the VAT Return (read paragraph 2.3).

Be aware that:

• the supply of services is excluded from Intrastat
• you must not include the supply of services in boxes 8 and 9 of the VAT Return
• only movements which represent physical trade in goods (read section 16) are covered by Intrastat, although there are some movements that are excluded (read paragraph 5.4)
• the close link with the VAT system is an essential feature in complying with Intrastat and also provides a means of checking the information supplied

2.2 Why Intrastat is important

The information collected by the Intrastat system is a key component for Balance of Payments (BOP) and National Accounts (NA) data, which is regarded as an important economic indicator of the UK’s performance.

The Office for National Statistics (ONS) uses the monthly trade in goods figures collected by HMRC together with the trade in services survey to produce the BOP and NA figures.

The Bank of England uses monthly trade data as part of its key indicators for gauging the state of the UK and world economic environment to set interest rates each month.

Government departments use the statistics to help set overall trade policy and generate initiatives on new trade areas.

Beyond the UK, trade statistics data are used by the EU to set trade policy and inform decisions made by such institutions as the European Central Bank, the United Nations and the International Monetary Fund.

The commercial world uses statistics to assess markets both within the UK (for example, to assess import opportunities) and externally (for example, to establish new markets for its goods).

2.3 Businesses required to submit Intrastat declarations

All VAT registered businesses must complete 2 boxes (8 and 9) on their VAT Return showing the total value of any goods supplied to VAT registered customers in other EUmember states (known as dispatches) and the total value of any goods acquired from VAT registered suppliers in other EU member states (known as arrivals).

In addition to this, larger VAT registered businesses must supply further information each month on their trade in goods with other EU member states.

If you dispatch goods to other EU member states or receive arrivals of goods from other member states with a value exceeding a legally set threshold (read paragraph 3.1), then you must submit the additional information. To do this you use a form known as an Intrastat Supplementary Declaration (SD), which you need to submit electronically.

The thresholds are reviewed annually, with any change normally announced towards the end of the preceding year. Changes will only apply from the beginning of a calendar year and you must make sure that you operate according to the threshold level currently set. For further information on the rules for submitting Intrastat, read section 3.

Businesses not registered for VAT and private individuals who move goods within the EU have no obligations under the Intrastat system. Read section 11 for an explanation of the treatment of trade by VAT registered businesses with private individuals or non-VAT registered businesses.

2.4 Definition of the UK for statistical purposes

For Intrastat purposes the term UK means the United Kingdom of Great Britain and Northern Ireland, its territorial waters and the UK Continental Shelf.

You must only declare for Intrastat those goods which move between the UK and another EU member state, its territorial waters or Continental Shelf waters.

Any sector of the North Sea or Continental Shelf allocated to a member state is deemed to be part of that state for statistical purposes. Therefore, movements of goods between the UK (including the UK Continental Shelf) and other EU member states or their Continental Shelves must be included in SDs.

The UK statistical territory includes the Channel Islands and the Isle of Man, so goods moving between the Islands and the mainland must not be declared. Special arrangements have been made to collect data on trade between the Channel Islands and EU member states other than the UK, eliminating the need for such trade to be entered on SDs.

If you’re VAT-registered in the Isle of Man you must send your SDs to the Isle of Man’s Customs and Excise in Douglas. Arrangements are in place to allow agents acting on behalf of Isle of Man businesses to send their declarations direct to HMRC.

Information on these arrangements can be obtained from the Isle of Man Customs by email: customs@gov.im or on Telephone: 01624 648100.

2.5 Statistical territories of the EU

A list of EU member states and associated or dependent territories which are included for Intrastat purposes:

Member state	Country code (read Note 1)	Included	Excluded
Austria	AT
Belgium	BE
Bulgaria	BG
Croatia	HR
Cyprus	CY	UK Sovereign Base Areas (read Note 4)	Northern Cyprus (read Note 3)
Czech Republic	CZ
Denmark	DK		Faroe Islands
Estonia	EE
Finland	FI	Aland Islands
France	FR	Monaco	All French Overseas Departments and territories (read Note 2)
Germany	DE	Heligoland	Busingen
Greece	GR	Mount Athos
Hungary	HU
Ireland	IE
Italy	IT		Campione D’Italia, San Marino, the Italian waters of Lake Lugano, the Vatican and Livigno (read Note 2)
Latvia	LV
Lithuania	LT
Luxembourg	LU
Malta	MT
Netherlands	NL
Poland	PL
Portugal	PT	Azores Madeira
Romania	RO
Slovakia	SK
Slovenia	SI
Spain	ES	The Balearic Islands	Ceuta, Melilla and Canary Islands (read Note 2)
Sweden	SE
United Kingdom	GB	Channel Islands and Isle of Man	Gibraltar

Notes

1.

These country codes must be used for Intrastat purposes only. The appropriate codes for EC Sales Lists can be found in VAT Notice 725: the single market or phone the Helpline on Telephone: 0300 200 3700.

2.

The French territories of French Guiana (GF), Guadeloupe (GP), Martinique (MQ), Mayotte (YT) and Reunion (RE) are part of the statistical territory of France. The Canary Islands (IC) are part of the statistical territory of Spain. Livigno (IT) is part of the statistical territory of Italy. However, because customs declaration is still required for exports to or imports from these territories HMRC continue to collect trade statistics from the customs declaration.

This information must not be declared on an Intrastat SD. This will avoid duplication of effort for businesses trading with these territories and prevent the data being declared twice.

The individual country codes (shown above in brackets) must be used on the customs declaration for exports to and imports from these territories.

In the published trade statistics, trade involving these territories will be included with that of France, Spain and Italy as appropriate. This is automatically produced within HMRC’s systems.

3.

The EU acquis (the body of European Law) is currently only applicable in the government Controlled Area of the Republic of Cyprus.

4.

Supplies to UK Sovereign Base Areas must be shown with the partner member state CY.

Andorra and Liechtenstein are both outside the customs territory (and therefore the statistical territory) of the EU.

2.6 Information not covered by this notice

This notice is for businesses that trade with other member states in the EU and are required to supply Intrastat Supplementary Declarations (SDs).

It does not cover:

• goods which are being imported from or exported to countries outside the territory of the EU for which customs declarations are required
• the supply of services other than those which are an integral part of a contract for the supply of goods, (that is, freight and insurance charges directly related to a particular supply) but read section 9 for goods undergoing process and paragraph 21.1 for goods supplied for installation and assembly
• the completion of the EU trade totals boxes on the VAT Return, this information is in Notice 700/12: how to fill in and submit your VAT Return
• the EC Sales List (ESL), details of which are in Notice 725: the single market
• import or export procedures such as licensing requirements

2.7 The regulations that provide the legal basis for Intrastat

The following EU Regulations provide the legal basis for Intrastat, and have force of law throughout the EU.

EC No. 638/2004 Council Regulation (dated 7 April 2004) – Official Journal Ref L102/1

As amended by:

• EC No. 222/2009 (31 March 2009) – Official Journal Ref L87
• EU No. 659/2014 (27 June 2014) – Official Journal Ref L189

EC No. 1982/2004 Commission Implementing Regulation (18 November 2004) – Official Journal Ref L343

As amended by:

• EC No. 1915/2005 (20 November 2005) – Official Journal Ref L307/8
• EU No. 91/2010 (2 February 2010) – Official Journal Ref L31
• EU No. 96/2010 (4 February 2010) – Official Journal Ref L34

Copies of these regulations can be downloaded from Access to European Union law.

The principal Statutory Instrument (SI) enabling regulation, which provides powers to HMRC to manage Intrastat in the UK is:

SI 1992 No. 2790 The Statistics of Trade (Customs and Excise) Regulations 1992

As amended by:

• SI 1993 No. 3015
• SI 1997 No. 2864
• SI 2000 No. 3227
• SI 2004 No. 3284
• SI 2006 No. 3216
• SI 2008 No. 2847
• SI 2009 No. 2974
• SI 2012 No. 532
• SI 2013 No. 3043
• SI 2014 No. 3135

Copies of these Statutory Instruments can be downloaded from www.legislation.gov.uk.

3. Information on submitting Supplementary Declarations (SDs)

3.1 The thresholds for submitting SDs

The exemption threshold for:

• arrivals is currently £1.5 million
• dispatches is currently £250,000

The rules for submitting SDs are explained in paragraph 3.2.

Exemption threshold information for previous years can be found in an Information Sheet ‘Intrastat thresholds (1993 to date)’ available on the uktradeinfo website (also read paragraph 21.9).

3.2 The rules for submitting SDs

The threshold applies on a calendar year basis, that is, January to December. Once you’ve exceeded the threshold you must continue to submit SDs until the end of the calendar year.

These provisions apply separately to arrivals and dispatches (read paragraph 3.1 for current thresholds). If your business exceeds the threshold for arrivals of goods, but not for dispatches, you only have to complete SDs for arrivals. If your dispatches (and not your arrivals) exceed the threshold, you only have to include dispatches on your SDs. If both arrivals and dispatches exceed the threshold, SDs must be submitted for both.

Once you’ve established that you’ve exceeded the threshold for arrivals or dispatches you must contact the Intrastat Enquiries Team, you can email them at: (intrastatenquiries@hmrc.gsi.gov.uk), stating the month in which you exceeded the threshold and whether it was for arrivals, dispatches, or both. HMRC will confirm the start date and advise you of any special arrangements.

At the end of each year your obligation can change. This will depend on whether or not your EU trade for the calendar year just ending has exceeded the threshold set for the following year. If it has exceeded this threshold you must supply SDs throughout the following calendar year.

For example:

• the arrivals threshold for 2014 is set at £1.2 million
• a business exceeds the threshold in October 2014 and starts submitting arrivals SDsfrom 1 October 2014
• the arrivals threshold for 2015 increases to £1.5 million
• the businesses trade is above the new arrivals threshold set for 2015 at the end of December 2014
• therefore the business must continue to submit arrivals SDs throughout 2015

Any change in the threshold, (usually announced towards the end of the year), does not affect your obligation to continue submitting SDs for the current year. So, if the value of your EU trade in any calendar year falls below the threshold, you must continue to supply SDs to the end of that calendar year.

If you’re not required to provide SDs at the start of the year, you must continue to monitor your trade. If, at the end of a particular month, the cumulative value of your EUtrade from 1 January for either arrivals or dispatches exceeds the threshold, you must submit SDs for the rest of the calendar year. This will include the month in which you reach the threshold.

For example, a business whose cumulative total of arrivals during 2015 exceeds £1.5 million in April would need to complete arrivals SDs from April to December 2015.

These rules apply equally to businesses whose EU trade expands to exceed the threshold, to those who start to undertake EU trade for the first time and to those who are newly registered for VAT.

It’s your responsibility to monitor your EU trade to determine when you have to submit Supplementary Declarations. HMRC will also be monitoring the value of your EU trade and will write to you from time to time to check that your records are correct.

In assessing the value of your trade you must not include any Excise Duty payable.

When calculating if you’ve exceeded the Intrastat threshold, remember that the value of goods involved in processing, moving between the UK and other EU member states, and the value of goods supplied to or received from private individuals, is included in EUtrade totals.

When a VAT registered business is sold to a new owner the obligation to submit an SDmight change, (typically where a company changes ownership), unless the person running the business remains the same after the sale as before. This is because the obligation to provide information is oriented around the particular person who concluded a relevant contract for the delivery or dispatch of goods. The SDrequirement cuts in where the value of such contracts in a given 12 month period exceeds the threshold for the time being in force. So, where businesses are sold and a new owner takes on the running of the business, they’ll only have an obligation to submit an SD if they’ve exceeded the threshold in their own right.

If you have no EU trade during a particular period the law does not require you to submit a ‘nil’ return. However, HMRC encourage you to submit ‘nil’ returns because this prevents unnecessary queries.

3.3 Delivery terms information

If your trade (either arrivals or dispatches) exceeds the delivery terms threshold you must provide additional delivery terms information on your SDs.

The delivery terms threshold for both arrivals and dispatches is currently £24 million.

If you exceed the threshold for arrivals (of goods), but not for dispatches, delivery terms must be provided for arrivals only.

If you exceed the threshold for the dispatch (of goods), but not for arrivals, delivery terms must be provided for dispatches only.

Unlike the exemption threshold, if you reach this second threshold during the calendar year, you do not have to start submitting delivery terms data until 1 January of the next calendar year and only then if your arrivals and, or dispatches remain above the new threshold set for the following year.

Delivery terms threshold information for previous years can be found in an Information Sheet ‘Intrastat thresholds (1993 to date)’, go to the uktradeinfo website (also read paragraph 21.9).

3.4 If you fail to submit SDs or they’re inaccurate

You could be liable to penalties if your SDs are persistently late, missing, inaccurate, incomplete or where only part of a month’s EU trade is declared. HMRC can provide help on the completion of the Intrastat forms if you’re experiencing difficulties.

The penalty regime is a criminal one and could result in proceedings in a magistrate’s court. This could lead to a maximum fine of £2,500 being imposed for each offence.

However, there could be the opportunity to ‘compound’ any proceedings which involves the offer of an administrative fine in lieu of any Court proceedings.

You must pay any administrative fines electronically by Bacs or CHAPs, using

Bank Account No: 12000903
Sort Code: 08 32 00

Use IP followed by your VAT number as the reference (for example, IP 123 4567 89). If this method poses any difficulty, email: intrastatenquiries@hmrc.gsi.gov.uk

Payment of a compound penalty does not absolve you from your legal obligation to submit the SDs for the periods covered by the penalty.

4. How to provide Supplementary Declarations (SDs)

4.1 Submitting your declarations

There are 2 ways of submitting Intrastat declarations:

• using the internet, read paragraph 4.2
• using Electronic Data Interchange (EDI), read paragraph 4.3

4.2 Using the internet

This is available to all Intrastat businesses including branches of companies submitting data independently of their head office and agents submitting on behalf of Intrastat businesses.

The secure system is accessed by username and password by either the GOV.UK or uktradeinfo websites and there are 2 methods of completion:

• by keying data directly onto an online form
• by an offline option using a CSV (Comma Separated Variable) file, preparing a CSV file is easy or you can use the HMRC pre-prepared Excel spreadsheet (Generator Tool)

Both methods are submitted by using the HMRC system. Validation checks are carried out on all mandatory fields during completion or submission and any errors found are identified for correction.

Only valid data can be transmitted. For more information or to sign up, go to the uktradeinfo website.

Alternatively you can contact:

Email: intrastatonline@hmrc.gsi.gov.uk

4.3 Electronic Data Interchange (EDI)

HMRC have a facility to receive data in the Electronic Data Interchange For Administration, Commerce and Transport (EDIFACT) Standard (an International Standard used for all HMRC’s EDI). Conversion of data to the EDIFACT Standard can be made in-house using the HMRC Technical Interface Specification (TIS) and is available on the uktradeinfo website. Commercial software packages can also be purchased.

Data in the EDIFACT Standard is transmitted by email attachment.

Before submitting your declarations using the EDIFACT Standard HMRC recommend that a test transmission is sent to email: edcs@edcsdata.hmrc.gov.uk.

Details of how to arrange a test transmission are explained in the TIS.

For more information on EDIFACT contact:

Telephone: 03000 592879
Email: ecu@hmrc.gsi.gov.uk

4.4 The due date for submitting declarations (due date)

Intrastat declarations must be submitted on a monthly basis.

Complete and accurate declarations must be received by the 21st day of the month following the reference period to which they relate.

For example, declarations for the March period must be received by the 21st of April. The reference period is normally a calendar month. If you use non-standard VAT periods (read paragraph 4.5 d.), the time limit operates from the end of the special period. For more information on reference periods read paragraph 5.5.

Declarations must be made for all goods covered by the reference period, even if no invoice has been received.

It’s important that you comply with this time limit. Failure to do so could make you liable to legal proceedings, (read paragraph 3.4).

4.5 Other questions answered

	Question	Answer
a.	Is more frequent submission allowed?	Yes. HMRC is keen to promote more frequent submissions if this is helpful. However, all submissions falling under a particular period must be received by the due date for that period.
b.	Can agents make the submissions?	Yes. However, the principal who appoints the agent remains responsible in law for the completeness and accuracy of the declarations. Agents submitting a declaration on behalf of a principal must complete the details required in the ‘Agents’ box where required and must use their own UK VAT registration.
c.	Can branches of a business make the submissions?	Yes, on application. You must write to: HM Revenue and Customs 3rd Floor, Alexander House 21 Victoria Avenue Southend-on-Sea Essex SS99 1AA You must enclose a list of your branches and quote: – your VAT registration number – branch name and address – contact name and phone number – a branch identifier consisting of a discrete 3-digit number of your own choice (HMRC suggest you use VAT branch numbers already issued) Agents can submit by branches in the same way.
d.	Are special accounting periods allowed? Where special accounting periods are used for VAT, normal calendar months can still be used for Intrastat.	Yes. If you have approval to use special VAT periods, as a concession, you’re allowed to use these when submitting SDs. You must use the same special VAT periods for both purposes. Intrastat SDs must still be submitted each month. Quarterly submissions are not acceptable and can leave you liable to legal action (read paragraph 3.4). If your business has 13 × 4 – week VAT periods, you must make sure that one of your Intrastat periods includes one 8-week period (12 submission periods in total).
e.	Can repeated similar consignments be aggregated to reduce paperwork?	You’re encouraged to aggregate values and quantities where all other details are identical.

5. The information that is required

5.1 Compiling the information

Wherever possible, Intrastat requirements align with VAT requirements. For example, the value to be declared for Intrastat is normally the invoice or contract price (exclusive of VAT), as used for VAT purposes. This allows the integration of Intrastat records with normal business VAT records, thus minimising the overall burden.

However, although Excise Duty is included on the VAT Return values, it’s not included in the value declared on the SD. Intrastat requires that you declare the value of the goods only (read paragraph 6.1 – Value). Therefore, if the total value of your arrivals or dispatches trade, excluding Excise Duty, is below the Intrastat threshold, you’re not required to submit Intrastat supplementary declarations.

5.2 The person who is responsible for declaring a movement of goods

The legal entity responsible for declaring the goods movement in the UK is usually the one who concluded the contract (with the exception of the freight contract) giving rise to the movement of the goods into or out of the member state.

In nearly all cases the legal entity responsible is the VAT-registered business that is able to zero-rate the supply to a business in another EU member state (for dispatches) or is liable to account for VAT on the acquisition of the goods (for arrivals). Where fiscal agents are responsible for VAT declarations, they’re also responsible for the SD.

However, in cases when a business which concluded a contract giving rise to the movement of the goods is unable to provide the data required, because of the way the goods are traded, the business which actually transfers the goods across the frontier will be responsible for making the declaration.

In certain circumstances the business who physically receives the goods (rather than the business that concluded the contract) will be in a better position to provide the declarations.

An example of this is a delivery of excise goods such as fuel oils where the excise warehouse keeper might be in a better position to provide the declaration. Even though the business that concluded the contract is legally responsible, it’s acceptable for the warehouse keeper to provide the declaration provided both parties are aware and in agreement of who will provide the declaration.

In these circumstances both parties must inform HMRC of who will be providing the declaration by emailing: intrastatenquiries@hmrc.gsi.gov.uk.

If the legal entity which concluded the contract is not required to be registered for VAT in the UK (for example, the goods are within the fiscal warehousing regime), then responsibility rests with the entity which arranged for the physical dispatch of the goods, or takes physical possession of goods which have arrived in the UK (for example, a warehouse keeper).

5.3 Goods that are included

You must report goods which have moved between the UK and another EU member state by way of trade.

This includes goods:

• bought and sold
• transferred within the same legal entity
• sent for or returned after processing
• supplied as part of a contract for services (read paragraph 21.1)
• to be installed or used in construction
• supplied free of charge (read paragraph 5.4)
• on long term hire, loan or operational lease (read section 19)
• lost or destroyed, if goods dispatched from the UK are lost or destroyed in transit they must be recorded on the supplementary declarations (this does not apply to arrivals)

5.4 Goods that are excluded

There are certain circumstances where movements of goods are excluded from Intrastat and must not be included on your Intrastat declaration.

These mainly concern:

• movements not by way of trade (for example personal goods such as travel luggage, items involved in moving house or ballast)
• goods in transit including goods which are in transit through the UK, this applies even when there are stops or temporary storage, provided that these are for transport reasons (read paragraph 10.2)
• certain purely temporary movements where the goods are to be returned to the original EU member state within 2 years and there is to be no change of ownership (read paragraph 10.1)
• monetary gold (read paragraph 21.8 – i)
• means of payment which are legal tender and securities, including means which are payments for services such as postage, taxes, user fees (read paragraph 21.8 – j)
• goods moving between the UK and its territorial enclaves (for example embassies, armed forces bases) in another member state or moving within the UK to an enclave of another member state (read paragraph 21.2)
• goods used as carriers of customised information, including software (read section 13)
• software downloaded from the internet (read section 13)
• commercial samples and advertising material provided free of charge (read paragraph 21.8 – g and a more detailed explanation of commercial samples and advertising material can be found in the Intrastat Information Sheets available on the uktradeinfo website)
• goods supplied using the Margin Schemes for second hand goods (read paragraph 21.8)
• goods sent for or returned after repair (read section 9)
• means of transport travelling in the course of their work, including spacecraft launchers at the time of launching (read paragraph 21.8 – k)
• newspapers and periodicals supplied under direct subscription (read paragraph 21.8– p)
• the supply of machine tools that remain in the UK and are used to manufacture goods that are dispatched to the EU (read Notice 701/22: tools for manufacture of goods for export)

5.5 Reference period

Goods must be included on the SD in either:

• the calendar month during which they arrive in, or are dispatched from the UK
• the calendar month of the VAT tax point
• you can choose which method will best allow you to meet the accuracy and timeliness requirements of the Intrastat system, but you must use the same method each month

5.6 Exchange rates

You must declare the value of goods on your SD in sterling. The exchange rate used for VAT purposes is acceptable and can be the UK selling rate published in national newspapers, banks or the period rate published by HMRC, available at www.uktradeinfo.com or www.gov.uk or from the VAT helpline.

If you wish to use a rate for VAT purposes which you use for commercial purposes, you must make sure that this is acceptable to HMRC by applying in writing to:

The exchange rate on the date of settling a supplier’s invoice, forward rates, or rates derived from forward rates are not acceptable as they do not represent an actual verifiable exchange rate and are purely speculative.

Further information on acceptable exchange rates is available in VAT Notice 700: the VAT Guide and VAT Notice 725: the single market.

5.7 Goods of unknown value

Due to the manner in which certain goods are traded, a value sometimes cannot be established at the time you need to submit your Intrastat declaration. In these cases, you can email:uktradeinfo@hmrc.gsi.gov.uk (or write to the address in paragraph 1.4) and HMRC might be able to authorise you to use a ‘best estimate’ of value. However, you must not use such a procedure without prior written approval.

Once you know the true value you’ll need to amend the original SD, as described in paragraph 6.3, unless the amount involved is less than the thresholds for providing amendments, (read paragraph 6.3).

Any delay caused by processing and reconciliation of invoices within your own organisation is not a valid reason for using a ‘best estimate’.

Detailed methods of establishing a value can be found in Chapter 3 (Value of goods for customs purposes) of the Union Customs Code (Council Regulation (EU) No 952/2013 Official Journal Ref No L269), which can be downloaded from Access to European Union law.

5.8 Classify your goods

Commodity codes are used to classify goods.

HMRC produce a comprehensive and fully searchable online directory of commodity codes, known as the Intrastat Classification Nomenclature (ICN).

Further help on classifying your goods can also be found in Notice 600: classifying your Imports and Exports.

If, after studying the ICN and seeking help from other sources such as a Trade Association or a Chamber of Commerce, you remain unsure of the classification of goods, you can request additional support by sending a request by email.

Email: classification.enquiries@hmrc.gsi.gov.uk

To enable HMRC to deal with your enquiry, ensure that:

• only one item is shown per email
• the request includes the following information:
  • what the product is
  • what it’s made of, if made of more than one material please explain the breakdown
  • what it’s used for
  • how the product works or functions
  • how it’s presented or packaged

Some additional information is required on certain products:

• footwear: include the type (for example shoe, boot or slipper), upper material detail, outer sole material detail, heel height and the purpose for men or women
• food: include precise composition details by percentage weight of all the ingredients to 100% and the method of manufacture or process undergone (for example fresh, frozen, dried, further prepared or preserved)
• chemicals: include the CAS Number, whether the product is a liquid, powder or solid and include the percentage ingredients
• textiles: include the material composition, how it is constructed (knitted or woven) and the name of fabric
• vehicles: include the age, engine type (petrol or diesel), engine size, whether the vehicle is new or used, whether the vehicle is over 30 years old, whether it’s in its original condition, is the vehicle going to be for everyday use

A classification officer will reply by email, giving you non-legally binding classification advice based on the information you’ve supplied.

5.9 Ancillary Cost Survey

The value declared on the SD is normally that used for VAT. This value will not be on a consistent basis as the delivery terms of contracts vary greatly, ranging from ex-works to fully delivered. Factors are programmed into the HMRC system to adjust individually declared values to the standard bases of value required by EU legislation for statistical purposes.

In order to produce and update these adjustment factors, HMRC need to seek information on freight, transport and insurance costs.

To help HMRC in this, you could occasionally be asked to provide details of costs incurred for a limited number of transactions, usually for no more than 6 lines of trade.

Response to the Ancillary Cost Survey is voluntary. However, your assistance in this area will enhance the integrity of the UK intra-EU trade statistics.

Once you’ve satisfactorily completed an Ancillary Costs Survey sample form, you’ll not be asked to take part again for at least 12 months.

6. How to complete a Supplementary Declaration (SD)

6.1 Information to be entered on the SD

This section explains how to complete the data fields on an Intrastat SD.

Important points to note:

• arrivals and dispatches must be submitted separately
• depending on the electronic option you use to input your declaration, you might be required to provide some additional information (‘Header Information’) each time you submit, such as your VAT number or branch ID, for example, if you use the online form, the Header Information is already there for you (for information on electronic submission, read section 4)
• if you submit by CSV file then you’ll need to input the Header (for information on electronic submission, read section 4)

Data Fields	Method of completion
Period covered Show this in ‘MMYY’ format, for example, 0115 for January 2015. If you submit by EDI show this in ‘YYMM’ format.	4-digit numeric
Commodity code You must classify goods by using the correct commodity code in the ICN (read paragraph 5.8).	8-digit numeric
Value Show the value in £ sterling rounded up to the nearest pound as used for VAT purposes. This will need to include any related freight or insurance charges where they form part of the invoice or contract price of the goods. Any extra charges (for example, freight and insurance costs) not included on the goods invoice must be excluded from the declared value. Excise Duty (on alcohol, tobacco and hydrocarbon oils) must not be included in the value declared. The section below (Delivery Terms) gives some examples of the make up of values associated with various types of contract or delivery terms.	Numeric (Do not show the £ sign or pence) You must show a value for goods supplied free of charge (read paragraph 21.4) Values must not be declared in euro
Delivery Terms If your trade (either arrivals or dispatches) exceeds the delivery terms threshold you must provide delivery terms information on your SDs. The threshold is currently £24 million. The following delivery terms are used in the UK:	3 character alpha
Cost and freight – named port of destination – the seller delivers the goods when they pass the ship’s rail at the port of shipment.	CFR
Cost, insurance and freight – the seller pays the costs, insurance and freight necessary to bring the goods to the named port of destination. (this term can only be used for sea and inland waterway transport. If it’s not intended to deliver the goods over the ship’s rail, CIP must be used).	CIF
Carriage and insurance paid – the seller pays the cost of carriage and insurance necessary to bring the goods to a named destination. (this term can be used irrespective of the mode of transport involved, including multimodal transport.)	CIP
Carriage paid to – the seller pays the cost of carriage necessary to bring the goods to a named destination.	CPT
Delivered at place – the seller bears the cost of the transport and risks up to delivery at the named place of destination.	DAP
Delivered at terminal – the seller bears the cost of the transport and all the risks until the goods are left unloaded at the agreed terminal.	DAT
Delivered duty paid – the goods are delivered to a named place of destination, not unloaded from any means of transport. (Although not applicable to Intrastat, DDP means that the goods are cleared for import and any duties and taxes have been paid).	DDP
Ex-works – the seller delivers when the goods are placed at the disposal of the buyer at the seller’s premises or another named place (for example warehouse).	EXW
Free alongside ship – the seller delivers when the goods are placed alongside the vessel at a named port of shipment.	FAS
Free carrier – the seller delivers the goods to a carrier nominated by the buyer at a named place.	FCA
Free on board – named port of shipment – the seller delivers the goods when they pass the ship’s rail at a named port of shipment.	FOB
Any other delivery combination not covered above.	XXX

These are only brief descriptions of the delivery terms accepted for Intrastat. Full details can be found in the ‘International Chamber of Commerce official rules for the interpretation of trade terms’. ICC publication No. 560. ISBN 92 842 1199 9, go to International Chamber of Commerce (ICC) Business Bookstore.

Examples:

• if the terms of your supplier’s invoice are FOB, then you must only include the value of the goods and the costs involved in transporting them from the supplier to the port or airport of final dispatch to the UK on your SD
• if you’re the supplier and the terms of your invoice are DDP, you must include the value of the goods and all the costs incurred in delivering the goods to a named place in the member state of destination

Nature of Transaction Code

A Nature of Transaction Code (NoTC) is used to indicate the type of transaction which is being declared on the SD. For example straight forward sales or acquisitions, goods sent for processing or free-of-charge goods.

The NoTC will normally only comprise one digit and a zero (for example NoTC 10, 40 and 50).

However, a second optional digit can be used to help you reconcile your Intrastat and VAT accounts, explaining anomalies which otherwise might result in enquiries from us (for example NoTC 16, 18 and 97). Use of this second additional digit information is not mandatory.

The NoTCs recognised by our systems are:
10	16	17	18	20	30	37	38	40	50
70	77	78	80	87	88	90	97	98

So, for example, the 2 digit combination of ‘26’ or ‘60’ will not be accepted by HMRC’s systems.

1. NoTC first digit

This section provides details of what NoTC first digit must be used to identify specific types of transactions.

Transaction	NoTCfirst digit to be used
a) All transactions involving actual or intended change of ownership for a consideration except those appropriate to NoTC 2, 7, or 8 (first digit). this includes stock moved within the same legal entity (between member states), and financial leasing also included are goods sent or received after processing where there’s a change of ownership Most commonly used with the second digit zero but can also be used with second digit 6, 7, and 8 (read 2a, b and c below).	1
b) Returned goods and replacement goods (read paragraph 7.2 for more information). Used with second digit zero.	2*
c) Free of charge (FOC) transactions involving permanent change of ownership. (A positive value must be shown on the SD for FOC goods. Read paragraph 21.4 for more information). Most commonly used with the second digit zero but can also be used with second digit 7 and 8 (read 2b and c below).	3
d) Goods sent or received for processing with no change of ownership. Used with second digit zero. You must only use NoTC 40 when goods sent for processing will return to the UK, or are being returned to the original dispatching MS (read paragraph 9.3).	4*
e) Goods returned or received following processing with no change of ownership. Used with a second digit zero. You must only use NoTC 50 when goods are being returned or received after being sent for processing using NoTC 40 (read paragraph 9.3).	5*
f) Joint defence projects or other joint inter-governmental production programmes. You must be registered as part of the project to use this code. Most commonly used with the second digit zero but can also be used with second digit 7 and 8 (read 2b and c below).	7
g) Transactions involving the supply of building materials and technical equipment under a general construction or civil engineering contract for which no separate invoicing of the goods is required and an invoice for the total contract is issued. (The value of the goods actually moving goes in the value data field of the SD, not the total value of the contract). Most commonly used with the second digit zero but can also be used with second digit 7 and 8 (read 2b and c below).	8
h) Other transactions which do not fit any of the descriptions in a) to g) above. Most commonly used with the second digit zero but can also be used with second digit 7 and 8 (read 2b and c below). (For example, first digit 9 can be used with second digit 7 when goods are sent on an operational lease that is intended to cover a period longer than 2 years).	9

*NoTC first digits 2, 4 and 5 identify transactions which are not shown in box 8 or 9 of the VAT Return.

2. NoTC second digit

In most cases the second digit will be a zero. However, there are circumstances when the use of further optional second digit information can be used to explain differences between VAT and Intrastat reporting (this is explained in more detail in section 7).

Transaction	NoTCoptional second digit to be used
a) Credit note values, for example, an amount used to reduce the overall value where it is used in combination with the first digit 1=16. The second digit ‘6’ acts as a negative value for VAT or Intrastat comparison purposes (read paragraph 7.2 for more information).	6
b) Transactions which must be declared on SDs, but are not shown in boxes 8 or 9 of the VAT Return, for example, goods arriving in an excise or fiscal warehouse (where the date of arrival, rather than the tax point is being used) where it is used in combination with NoTC 1=17. (Second digit ‘7’ can also be used with 1c), 1f), 1g) and 1h) above. For example, 37, 77, 87 and 97. Read paragraphs 17.2 and 17.3 for more information on excise and fiscal warehouses).	7
c) Transactions which are declared in boxes 8 or 9 of the VAT Return, but are only required on the SD for reconciliation purposes. For example, goods leaving an excise or fiscal warehouse (to home use in the UK) where the tax point has not been used to declare the arrival, stage payments made when no movement of goods occurs, or final stage payment (read paragraph 14.1 for more information). In these examples the second digit 8 will be used with the first digit 1=18. Second digit ‘8’ can also be used with 1c), 1f), 1g) and 1h) above, for example 38, 78, 88 and 98.	8

Data Fields

Method of completion

Net Mass and Supplementary Units You only need to complete one of these 2 data fields. Whether you’re required to supply net mass or a supplementary unit depends on the commodity code. Where the ICN shows that a supplementary unit is required, the appropriate unit must be entered. For all other codes only the net mass in kilograms is required. This must be rounded up to the next whole kilogram. HMRC’s systems take account of items weighing less than 1 kilogram which are rounded up. Full details on this can be obtained from the ICN, go to the uktradeinfo website. If the net mass data field is automatically populated by your system, your data will not be rejected as long as supplementary unit is declared when required.

Numeric

Data Fields	Method of completion
Country from or Country to The EU member state from which the goods were dispatched (Country from) must be quoted on the arrivals SD. The EU member state to which the goods are being dispatched (Country to) must be quoted on the dispatch SD. Read paragraph 16.2 for specific transactions where country code QR can be used.	The UK only accepts a 2 digit alpha code when completing this box.
Austria	AT
Belgium	BE
Bulgaria	BG
Croatia	HR
Cyprus	CY
Czech Republic	CZ
Denmark	DK
Estonia	EE
Finland	FI
France	FR
Germany	DE
Greece	GR
Hungary	HU
Ireland	IE
Italy	IT
Latvia	LV
Lithuania	LT
Luxembourg	LU
Malta	MT
Netherlands	NL
Poland	PL
Portugal	PT
Romania	RO
Slovakia	SK
Slovenia	SI
Spain	ES
Sweden	SE
United Kingdom (read paragraph 2.4 for definition of the United Kingdom)	GB (Great Britain and Northern Ireland)
Trader reference The completion of this box, for example with an invoice number, will assist in resolving any queries raised by a visiting officer. Completion of this box is optional.	Alpha and, or numeric.

6.2 If you’ve omitted a transaction from a previous SD

Using the internet

If you find that you’ve omitted transactions from a previous period, you must provide an additional SD, entering in the ‘period’ box the month and year in which the movements of the goods actually occurred (read paragraph 5.5).

If you discover that you’ve omitted a transaction, it must be declared at the earliest opportunity. Do not wait until the following period to declare the omission.

EDI transmissions

You can include data from previous periods providing you’ve set up the message header in accordance with the requirements in the Technical Interface Specification. You must declare the omission as soon as possible.

6.3 Correcting an error on a previous SD

No action is required on genuine errors relating to commodity code, value, country from/to or goods declared in an incorrect period unless the value of an error on a single data line exceeds £10,000.

If you’ve made an error on a previous transmission, you need to make your amendment online.

The online amendment form is available in the Intrastat section of the uktradeinfo website.

7. Reconciling VAT and statistical declarations

7.1 When Supplementary Declaration totals do not agree with VAT Return figures

Normally the figures you declare on your VAT Return for EU supplies and acquisitions of goods will agree with the totals of the values you declare on your SDs. It’s a basic principle of Intrastat that the VAT figures are used as control totals, providing a check that SDs are complete and accurate.

However, there are times when the 2 will not agree because of the different reporting requirements of the 2 systems. HMRC might query differences between the 2 sets of figures and visiting officers will ask you to explain any differences when they visit to check your declarations.

HMRC have devised a system which will allow you to account for these differences and although not mandatory, its use can reduce the number of reconciliation queries.

The system involves the use of the second digit of the NoTC (read paragraph 6.1). These codes must only be used in the circumstances described in paragraphs 7.2, 7.3 and 7.4.

A brief outline of the system is as follows:

• a minus figure (typically used in the case of credit notes) is indicated by a 6 as the second digit of the NoTC (there’s no provision for negative figures on the SD)
• a first digit of the code 2 (returned goods), 4 (goods sent for process) 5 (goods returned following process), identifies the transaction as one which must not be declared for VAT, in whole or in part
• where other codes are appropriate, or the VAT declaration has to be made at a different time, the second digit code 7 can be used to indicate that there’s no corresponding VAT declaration
• code 8 as the second digit, with a value, indicates a transaction which at that time, must be declared for VAT but not for statistics (the entry on the supplementary declaration is for reconciliation purposes only)
• HMRC’s systems take the above codings into account when comparing the 2 sets of figures

7.2 Credit notes and retrospective discounts

Credit notes – goods not returned

Credit notes reduce VAT Return totals. There’s no provision for negative figures on the SD. Credit note details can be included on the SD as an adjusting figure, either individually or as a period total.

The appropriate first digit of the NoTC is quoted (in the majority of cases this would be 1), followed by second digit 6, together with the value of the credit. The other boxes on the line of the declaration need not be completed (however, if you submit your data by EDI you’ll need to complete the SD in full).

The credit note system must not be used to correct value errors or amendments in previous records (procedures for error correction are explained in paragraph 6.3).

Goods returned for credit

Goods returned for credit must be recorded on your SD as a movement of goods in the normal way. However, returned goods must not be shown on your VAT Return. To make the reconciliation at this stage you must show NoTC 2 as the first digit (returned goods), followed by code 0.

When you enter the credit note in your VAT records you can then follow the procedure outlined in the first paragraph of 7.2 using NoTC second digit 6.

Example:

Goods are dispatched to France in July and the sales invoice is issued immediately. The goods are found to be the wrong size and are returned in August. A credit note is issued covering the full invoiced amount.

On the VAT Return the credit note would reduce the box 8 total. SDs would be completed as follows:

July –

Dispatches SD with full details as per sales invoice. NoTC 10 would be shown.

August –

Step 1 – Arrivals SD, (if you’re above the threshold for arrivals), giving full details of the returned goods and quoting NoTC 20. (If you’re not over the threshold for arrivals, no declaration is required).

Step 2 – Dispatches SD showing the value of the credit note and quoting the NoTC 16 only (complete all other boxes if submitting by EDI).

HMRC’s systems ignore the code 20 when comparing SD and VAT Return figures (because returned goods must not be included in box 8 or 9).

Credit note details must be entered in your records for the period in which the credit note was received.

A more detailed Information Sheet on ‘Credit Notes’ is available on the uktradeinfo website (read paragraph 21.9).

Retrospective discounts

Retrospective discounts must only be included if you know that such transactions are going to apply. See also prompt settlement discount (paragraph 21.8 d).

If you need to correct an invoice with a new invoice and this means that the corresponding Intrastat declaration previously submitted is now incorrect, you must provide an online amendment (see paragraph 6.3). You must not use NoTC.

7.3 Dealing with transactions which must be included on a Supplementary Declaration but not included in boxes 8 and 9 of the VAT Return

Typical examples of such transactions are:

• goods sent for processing
• returned or replacement goods
• goods supplied as an integral part of a supply of services

For the most part, these transaction types are identifiable from the first digit of the NoTCs, 2, 4 and 5 which involve the movement of goods that are not liable (in whole or in part) to be included in boxes 8 and 9 of the VAT Return trade totals. For these codes HMRC’s system can make the necessary adjustments before comparing the 2 sets of figures.

You need to only select the appropriate first digit of NoTC and enter the second digit as 0. All the remaining mandatory items of data on the line must be completed.

Businesses completing SDs for the receipt or dispatch of goods for processing work must quote the value of the goods under NoTC 40 (read section 9 if the goods are subject to a change of ownership).

Goods returned or received after processing require a declaration quoting the enhanced post processing value using NoTC 50 (read section 9 if the goods are subject to a change of ownership).

The above treatment will not work where goods are supplied as an integral part of a supply of services, which are not required to be reported in boxes 8 and 9 of the VAT Return, but must be reported on the SD. In these cases the NoTC must show the appropriate first digit, followed by second digit 7.

7.4 Dealing with transactions which must be included in boxes 8 or 9 of the VAT Return but are not reported on a Supplementary Declaration

The value of certain transactions must be declared on the VAT Return, for example stage payments. However, because there’s no corresponding goods movement, no reporting on the supplementary declarations would normally be required.

To prevent an anomaly appearing between the VAT and Intrastat data, you can enter the value declared on the VAT Return on your supplementary declaration with the NoTC 18 and no other data is required. However if you submit by EDI you need to complete the SD in full.

NoTC 18 informs HMRC’s systems that although a value has been declared on the VAT Return, no corresponding goods movement has taken place and no enquiries will be made.

8. Keeping records and Intrastat visits

8.1 Your legal requirements

If you’re legally required to submit SDs you must:

• keep a copy of every SD you make or which is made on your behalf
• keep copies of all papers and documents which have been used for the purpose of compiling SDs
• produce any of the above records to a HMRC visiting officer when required to do so
• permit the officer to make copies or extracts or remove records for a reasonable period

You must keep your records for 6 years. This is in line with VAT requirements, and applies equally to information stored by electronic means.

HMRC’s visiting officers have the right to enter the premises of such businesses, or the premises of anyone compiling SDs on their behalf, at any reasonable time in order to carry out checks.

Computer records

You can keep your records on a computer provided they can be readily converted into a satisfactory legible form and made available to HMRC on request. If you do keep your records on a computer, you must make sure that HMRC can have access to it and can check its operation and the information stored.

HMRC can ask for help from you or anyone else having charge of, or otherwise concerned with the operation of the computer or its software.

If a computer bureau is employed, you’re responsible for arranging for the bureau to make your records available when HMRC wish to see them. Normally this will be at your principal place of business.

However you decide to keep your records, you must be able to make them readily available to HMRC’s officers when they ask to see them.

8.2 The Intrastat visit

Periodic visits will be made to assure systems used to complete SDs and check the accuracy of your Intrastat declarations. The visit will be made to your premises, not to your agent. You’ll need to make sure that your agent sends you copies of declarations for your files.

With the agreement of the Intrastat officer, a visit can exceptionally be made to an agent’s premises where this is considered appropriate. These arrangements are entirely at the discretion of the officer and do not relieve the business of any of the responsibilities of the Intrastat system.

During the visit the officer will:

• want to talk with you or the person who is in charge of your intra-EU trade, to get a complete picture of your activities and to have your system of record keeping explained
• want to inspect your records of the SD information sent to HMRC, this will apply whether you’ve supplied the declarations yourself or have employed an agent to send the information on your behalf
• ask you to explain any differences between the total of the values shown on your SDand the EU-trade totals shown on your VAT Return
• need to be satisfied that declarations are complete and accurate
• want to know what steps you take to make sure that your declarations are correct, and that they’re submitted on time
• check the build-up of declarations, and ask you to produce the documentation to support selected items within declarations, such documentation might include orders, delivery notes, goods invoices, freight invoices or payment advices
• select from documents and check that they’ve been correctly included in declarations
• make cross-checks between the 2 sets of records, if your Intrastat and normal purchase or sales records are separate
• want to examine your computer systems and computer data in order to perform checks
• need access to the ICN Online, available on the uktradeinfo website

9. Movement of goods for processing or repair

9.1 Definition of a repair

A repair entails the restoration of goods to their original function or condition. The objective of the operation is simply to maintain the goods in working order. This can involve some rebuilding or enhancements but does not change the nature of the goods in any way.

Goods sent for or returned after repair must not be declared for Intrastat.

9.2 Definition of processing

Processing covers operations (transformation, construction, assembling, enhancement or renovation) with the objective of producing a new or really improved item. This does not necessarily involve a change in the product commodity code.

9.3 Reporting requirements for goods subject to processing

Although goods sent or received in the processing cycle are regarded by the VAT system as a service, for Intrastat there’s still a movement of goods which must be declared.

Therefore, although goods for processing do not require an entry on box 8 or 9 of the VAT Return, they must be shown on the SD. You must include the value of the goods both sent for or received after processing.

If goods sent for processing do not change ownership and return after processing to the EU member state from which they were dispatched, you must use NoTC 40 or 50. NoTC40 indicates goods which have been sent or received for processing, NoTC 50 indicates goods which have been received or returned after processing.

Goods returned after processing do not necessarily have to return to the businesses which dispatched them in the first place. As long as the goods return to the original member state of dispatch (and no change of ownership takes place) NoTC 40 and 50 must still be used.

If the goods sent for processing change ownership (for example, if the business carrying out the processing purchases the goods on their own account), you treat the movement as a normal purchase or sale and use NoTC 10 (or you can use NoTC 17 if no declaration is made on the VAT Return).

If you send goods for processing which are to be incorporated with goods purchased from another member state to make the finished article, NoTC 40 and 50 must not be used.

NoTC 10 (or you can use NoTC 17 if no declaration is made on the VAT Return) is used for both the goods sent for processing and the processed goods returned to you.

Goods that are going to be dispatched to a third member state after processing are reported using NoTC 10 (or you can use NoTC 17 if no declaration is made on the VAT Return).

The value of goods being sent or received for processing should be the cost of the goods. The value of goods received or returned after processing should reflect the enhanced value of the goods, that is, the value of the goods plus the cost of the processing.

Where the value of goods received for processing is not known, for example, for reasons of commercial confidentiality, a sensible estimate of the value should be made (read paragraph 5.7 for further details).

A more detailed Information Sheet on ‘Processing’ is available on the uktradeinfo website (also read paragraph 21.9).

10. Temporary movements, goods in transit and sale or return goods

10.1 Temporary movements

A ‘temporary movement’ refers to goods dispatched or arriving for a specific purpose and intended for re-dispatch within a specified period without having undergone any change (except normal depreciation due to the use made of them).

The definition of a temporary movement applies to both arrivals and dispatches.

You must not report any ‘temporary movements’ of goods on your Intrastat SDs when:

• no processing is planned or carried out
• the expected duration of the temporary use is not intended to be longer than 2 years
• the goods subject to the movement do not change ownership

However, if the circumstances of the temporary transfer of the goods change, you must make an Intrastat declaration for the period in which the change occurs.

For example this could be:

• if the 2 year rule is exceeded
• the goods undergo a process
• the ownership of the goods passes to the business to which the goods were initially transferred temporarily in the destination member state

10.2 Goods in transit

Goods in transit through an EU member state are goods entering and leaving that member state with the exclusive purpose of reaching a third EU member state. If goods are dispatched from member state A, by member state B to member state C, the dispatch will be from A to C. Conversely the arrival in member state C will be from A.

Temporary halts for logistical reasons, for example simple repackaging for groupage, or transfer to another means of transport, are considered to be transit as the goods do not add to the stock of material resources of the member state through which they’re passing. Temporary halts can include a period of warehousing.

However, in the example above, if the halt in member state B involves a process not inherent in the transport of the goods, (for example, a bulk product is repackaged into retail packs and relabelled), the partner member states for dispatch and arrival are member states A and B. In the subsequent movement to member state C, B and C are the partner member states.

Where goods are being exported from an EU member state to a country outside the EU, but are temporarily warehoused in another EU member state for transport reasons, this is not a movement of goods under the Intrastat system and must be declared as an export.

10.3 Sale or return goods

The supply of goods on sale or return is deemed to be a supply of goods (transfer of own goods) in the EU member state from which they’re sent and an acquisition in the EUmember state to which the goods are transferred by the business sending them.

The business sending the goods must therefore register for VAT in the destination member state, or appoint a tax representative (subject to the rules on tax representatives in that member state) and account for acquisition tax there.

The goods must be declared on the SD, in box 8 of the VAT Return and on an EC sales list.

If the goods are then sold, the sale (at whatever price) is a domestic supply within the destination member state and does not affect the cost price declared on the SD or in box 8 of the VAT Return.

If the goods are subsequently returned unsold they must be declared on an arrivals SDand in box 9 of the VAT Return.

Goods arriving in the UK on sale or return require the sender to register for VAT in the UK or to appoint a tax representative. Acquisition tax must then be accounted for on the goods and an arrivals declaration made if the business has exceeded the Intrastat threshold.

A more detailed Information Sheet on ‘Sale or Return’ is available on the uktradeinfo website (also read paragraph 21.9).

11. Supplies made to or received from private individuals

11.1 Definition of a private individual

‘Private individuals’ include businesses not registered for VAT as well as private persons.

11.2 Reporting requirements for supplies made to or received from private individuals

If you make sales to, or receive purchases from private individuals in another member state you must report the transaction on an Intrastat supplementary declaration using the VAT exclusive invoice value.

The value of the sale or purchase must not be declared in box 8 or 9 of the VAT Return, or in the case of sales, on the EC Sales List. NoTC 17 can be used on the Intrastat declaration to explain any discrepancy between the amount declared for Intrastat and the box 8 or 9 figure on the VAT Return.

For transactions with a value of less than £175, you can declare sales under the Low Value Threshold (read paragraph 20.1).

In the event that you make sales to private individuals in a particular member state which exceed the distance-selling threshold for that member state, you’ll need to register for VAT in that member state (or appoint a tax representative).

VAT must be accounted for in the member state where the distance sale is made. No UK VAT is charged on these sales. A dispatches SD must be completed as normal (using NoTC 10). The same will apply if you choose to voluntarily register for VAT in a member state where you make sales to private individuals.

Each EU member state is responsible for setting its own distance-selling threshold. You need to contact the fiscal authority in the member state of destination of the goods to determine the threshold value (contact details are available in VAT Notice 725: the single market).

VAT-registered businesses with trade above the Intrastat exemption threshold must also report purchases from private individuals in other member states on an Intrastat SD.

You must include the VAT exclusive value of sales to and purchases from private individuals in your calculations to assess whether you’ve exceeded the Intrastat exemption threshold.

Dispatches of new means of transport by VAT registered UK businesses to private individuals in other EU member states are liable to be reported for Intrastat. For a definition of a new means of transport, refer to Notice 728: new means of transport.

If you’re supplying members of the British Armed Forces, their dependents and civilian workers stationed in a British Army base located in another EU member state, read paragraph 21.2.

Sales of excise goods to private individuals are dealt with in VAT Notice 700/1: should I be registered for VAT?

12. Inter-Company Transfers

12.1 The meaning of ‘inter-company transfers’

‘Inter-company transfers’ are movements of stock between subsidiaries or branches of the same legal entity or business based in different member states.

12.2 Intrastat treatment of inter-company transfers

Inter-company transfers of goods between the UK and other EU member states are reported for Intrastat in the normal way. Therefore a supply of own goods by a legal entity in the UK to the same legal entity in another EU member state would require an Intrastat declaration.

For example, an Intrastat declaration will be required when a subsidiary or branch of a business in the UK dispatches or receives goods from a branch or subsidiary of that business located in another member state.

Values to be declared for Intrastat purposes are the amounts that would have been realised in the event of a sale or purchase under normal market conditions, not the value agreed between the 2 related parties. In other words, the value to be used for Intrastat is the same as would have been applied if the transaction were between unrelated parties.

Any adjustment to the value made at a later date, which means that a value based on ‘a sale or purchase under normal market conditions’ was not used for Intrastat purposes at the time the declaration was originally made, will require an amendment to the original declaration (subject to the normal rules for submitting amendments, read paragraph 6.3).

NoTC 10 must be used to report these transactions.

13. Software and licences

13.1 Intrastat treatment of software and licences

The Intrastat treatment of software will generally depend on whether the software is mass produced (‘off-the-shelf’) or specifically developed for a client (‘bespoke’). However, all software supplied over the internet is excluded from Intrastat.

Hardware sold together with software and software licences

For example, where the transaction involves a PC equipped and sold with software and licences. The total value of the hardware and software or software licences is declared.

The software (+ licence) must be classified separately by its correct commodity code (Heading 8523).

Software developed for a client by a specialised software house

For example, a software company produces tailor-made software (including the carrying media) to deal with the accounts of a particular business. The software (including the carrying media) is not declared.

Mass-produced software available off the shelf with material support

For example, commercially produced computer operating systems such as Windows, Linux or Mac. The total value of the software and the support is declared.

Where the price of a piece of ‘off-the-shelf’ software contains the cost of a licence to operate the software and the price of the licence is not shown as a separate invoice line, the whole value is declared for Intrastat.

Where an invoice for ‘off-the-shelf’ software shows a separately itemised licence fee (single or multiple), only the software cost is declared for Intrastat.

Updates for mass-produced software

For example, upgrades produced for software at above. The value is declared unless the original price of the software included the cost of upgrades. If the original cost included upgrades and no invoice is raised, no declaration is required.

Software not involving a physical exchange of goods

For example, the supply of software by using the internet or additional licences or rights for the use of previously supplied software. The transaction is not declared.

Licences supplied on their own

Licences supplied on their own, whether singly or as multiples, are regarded as a service and are not to be declared for Intrastat.

14. Stage payments and staggered consignments

14.1 Stage payments

Many transactions involve payment in stages before and in some cases after the physical movement of the goods.

This leads to discrepancies between the VAT and statistical figures submitted. In these circumstances HMRC encourage the use of the second nature of transaction digits 7 and 8, to reconcile the figures (read paragraph 6.1 – NoTC definitions).

For example, if a payment is received which has to be shown in box 8 of the VAT Return but there’s no movement of goods, only this value with NoTC 18 is shown on the SD (no other line detail is required – but read paragraph 7.4 if submitting by EDI).

If the goods are delivered at the same time as the receipt of a stage payment that has to be shown in box 8 of the VAT Return, complete a full line on the SD quoting NoTC 17 using the total value of the contract and complete a separate line of the SD declaring just the payment with NoTC 18 (but read paragraph 7.4 if submitting by EDI).

14.2 Staggered consignments

Staggered consignments are the arrival or dispatch of components for completed goods in a disassembled state over several Intrastat reporting periods.

Data on arrival or dispatch of staggered consignments must be reported only once, in the month that the last consignment arrives or is dispatched. The full value of the complete product must be declared with the classification code for the assembled product.

15. Call-off and consignment stock

15.1 Call-off stock

Call-off stock occurs when goods are transferred to another member state to provide a stock of goods from which customers can use and pay for (‘call off’) items as they require them.

The storage facility in the other member state can be operated by the supplier. However, customers must be aware of the details of deliveries into storage.

Goods supplied from the UK to another member state under the ‘call off’ system must be declared as a dispatch with a value based on the cost of the goods. Similarly, ‘call off’ goods supplied to the UK from another member state must be declared as an arrival with a value based on the cost of the goods (Further details can be found in VAT Notice 725: the single market).

A detailed Information Sheet on call-off stock and consignment stock is available on the uktradeinfo website (also read paragraph 21.9).

15.2 Consignment stock

Consignment stock occurs when you transfer your own goods to another EU member state to create stocks under your control, from which supplies will be made by you, or on your behalf, in that member state.

Consignment stocks transferred from the UK to other EU member states must be reported as a dispatch and consignment stocks transferred from another EU member state to the UK must be reported as an arrival.

Read paragraph 12.2 for details of the value to be used.

A detailed Information Sheet on call-off stock and consignment stock is available on the uktradeinfo website (read paragraph 21.9).

16. Vessels, aircraft, offshore installations and sea products

16.1 Vessels and aircraft

Intrastat reporting of sales or purchases of sea-going vessels and aircraft with an unladen weight exceeding 2000kg follows the transfer of ‘economic ownership’ rather than the physical movement of the vessel or aircraft.

The economic ownership of these vessels or aircraft is defined as ‘the right of a natural or legal person to claim the benefits associated with the use of a vessel or aircraft in the course of an economic activity by virtue of accepting the associated risks’.

Therefore, Intrastat movements will cover the transfer of economic ownership of a vessel or aircraft between a taxable person established in one EU member state to a taxable person established in another EU member state.

For example, a UK business that sells a tanker operating between France and Italy to an economic owner established in Germany will report this transaction as a dispatch to Germany, even though there is no physical movement of the vessel between the UK and Germany.

Newly constructed commercial vessels and aircraft are reported by following the flow from the EU member state of construction to the EU member state where the taxable person taking ownership of the vessel is established. For example, a UK business supplying a newly constructed commercial aircraft to a German business, (but who deliver the aircraft to a Spanish airport), will report the sale as a dispatch to Germany.

The same principle applies to military vessels and aircraft. For Intrastat purposes, the transaction follows the change in ownership rather than the physical movement.

Vessels not considered to be sea-going and aircraft with an unladen weight not exceeding 2000kg are reported in the normal way (following the physical movement of the goods).

16.2 Goods delivered to vessels and aircraft

You’ll need to provide an Intrastat declaration if you supply goods in a UK port or airport to vessels or aircraft that belong to ‘economic owners’ from other EU member states. For a definition of ‘economic ownership’ read paragraph 16.1.

You must use special commodity codes and the country code ‘QR’ for goods that are for consumption by passengers and crew or for the operation of the engines, machines or other equipment. When these commodity codes apply, less detailed information is required on the Intrastat declaration.

Goods for consumption by passengers and crew refer solely to items ‘consumed’ by them, for example food, drink, plastic cutlery or paper napkins during the course of the journey. Supplies for the operation of the engines and machinery refer solely to oil and fuel (sometimes referred to as ‘bunkering’) to be used during the journey.

Goods which will be sold to passengers and which are not necessarily consumed on board the vessel or aircraft (such as watches, perfumes, tobacco products, gift sets or toys) are excluded from Intrastat declarations.

As these provisions only relate to dispatches, a vessel with UK economic ownership in the port of another EU member state, which is supplied by a business in that member state, is not required to report this supply as an arrival.

The special simplified commodity codes and simplified data are as follows:

• 9930 2400 for goods from chapters 1 to 24 of the ICN
• 9930 2700 for goods from chapter 27 of the ICN
• 9930 9900 for goods classified elsewhere

Additionally the following information must be shown:

• the simplified country code ‘QR’ – you do not need to identify the actual EU member state of origin of the economic owner of the vessel or aircraft
• the quantity for goods belonging to Chapter 27 of the ICN (refer to the ICN for the specific quantity required)
• the value

For example, fuel delivered by a UK VAT registered business to a German economically owned aircraft that’s being refuelled while in a UK airport must be declared as a dispatch to Germany using special commodity code 9930 2700. The only other information required is the simplified country code (QR), the quantity for the goods and the value.

The special commodity codes (and simplified reporting) do not apply to durable goods (for example bed linen or TV sets) which are to remain on the vessel or aircraft. Deliveries of these goods must be reported using the appropriate commodity code the goods are classified to and the actual EU country code of the economic owner.

Supplies of goods for vessels or aircraft which are delivered to the territory of another EU member state for loading onto that vessel or aircraft are reported in the normal way (a normal detailed Intrastat declaration using the country code of the member state to where the goods are dispatched to).

16.3 Goods delivered to and from offshore installations

Offshore installations refer to the equipment and devices installed on the high sea in order to search for and exploit mineral resources, for example oil rigs.

The Intrastat reporting of goods dispatched to or received from an offshore installation will depend on where the offshore installation is located.

Goods dispatched from the UK to an offshore installation in an area where another EUmember state has exclusive rights to exploit that seabed or subsoil are to be reported as a dispatch.

Goods dispatched from an offshore installation established in an area where the UK has exclusive rights to exploit that seabed or subsoil (such as the UK Continental Shelf) to another EU member state are to be reported as a dispatch. This includes products pumped from the installation such as oil or gas.

Goods (including products pumped from the installation such as oil and gas) delivered from an offshore installation established in an area where another EU member state has exclusive rights to exploit that seabed or subsoil to the UK are to be reported as an arrival.

An Intrastat declaration will also be required for movements of goods between offshore installations situated in an area where the UK has exclusive rights to an offshore installation where another EU member state has exclusive rights.

Goods dispatched from the UK to an offshore installation established in an area where another EU member state has exclusive rights to exploit that seabed or subsoil for its operation, or for the operation of its engines, machines and other equipment must be reported using the following mandatory codes:

• 9931 2400 for goods from chapters 1 to 24 of the ICN
• 9931 2700 for goods from chapter 27 of the ICN
• 9931 9900 for goods from any other chapter of the ICN

Additionally the following information must be shown:

• the country code of the EU member state that has exclusive rights (code ‘QV’ must not be used)
• the quantity for goods belonging to Chapter 27 of the ICN (refer to the ICN for the specific quantity required)
• the value

The mandatory commodity codes must also be used when goods are received from another EU member state by an offshore installation established in an area where the UK has exclusive rights to exploit that seabed or subsoil for its operation or for the operation of its engines, machines and other equipment.

Goods supplied to or delivered from offshore installations situated within the UK’s statistical territory (read paragraph 2.4) are not to be reported as they’re considered to be a domestic movement.

16.4 Sea products

‘Sea products’ are fishery products, minerals, salvage and all products which have not yet been landed by sea-going vessels.

Sea products belong to the EU member state where the ‘economic owner’ of the vessel that has captured the products is established, regardless of where the products were captured. (read paragraph 16.1 for a further explanation of economic ownership.)

Arrivals are reported when sea products are landed in a UK port by a vessel that belongs to an economic owner from another EU member state, or when sea products are acquired by a UK owned vessel from a vessel that belongs to an economic owner from another EU member state.

Dispatches are reported when sea products are landed in another EU member state by a UK economically owned vessel, or when sea products are acquired by a vessel owned by another EU member state from a UK economically owned vessel.

For example, a vessel whose economic ownership originates in the UK, nets fish in the North Sea and then lands the fish in a French port, will be required to report this movement as a dispatch to France. If while at sea, the same vessel transfers fish to a vessel that is deemed to belong to Germany, then a dispatch declaration from the UK to Germany is required.

A vessel that belongs to an economic owner from another EU member state, which lands fish for the first time in the UK, must report an arrival if it’s registered for VAT in the UK. Otherwise the buyer of the catch must declare an arrival.

HMRC recommend that you use NoTC 17, when sea product movements are reported for Intrastat but not for VAT purposes.

A more detailed Information Sheet on Sea Products is available on the uktradeinfo website (read paragraph 21.9).

17. Warehouses, Inward Processing and Onward Supply Relief

17.1 Customs warehouses

Movements of goods not in free circulation within the EU from one customs warehouse to another do not fall within the Intrastat system. (read paragraph 17.2 for excise warehouses).

Where goods not in free circulation are put into free circulation on leaving the warehouse (that is, Customs Duty is paid) and then dispatched to another EU member state, Intrastat rules apply to the movement.

17.2 Excise warehouses

Goods in excise warehouses (for example, oils, alcohol or tobacco) might have been produced within the EU or might be non-EU goods on which Customs Duty, but not UK Excise Duty might have been paid. EU movements of such goods between excise warehouses are included within the Intrastat system and are reported on supplementary declarations.

When the Intrastat declaration is made for goods entering into a UK warehouse from another EU member state, depends on whether the goods are in retail packaging or in bulk.

Goods packaged for retail distribution (in other words, in packaging suitable for retail sale such as bottles or cans). The Intrastat report can be made either:

• when the goods enter the warehouse for the first time
• when the goods are removed from the warehouse into ‘home use’ (Excise Duty is paid and a VAT tax point created)

You can adopt the method most suited to your trade. However, the method chosen must be used consistently, that is, if you choose to report under the first bullet point above you must, as far as possible, use that method for all ‘retail’ consignments. For reports using the first bullet point above, HMRC request that NoTC 17 is used as this indicates that, whilst the goods are reported for Intrastat purposes, there’ll be no corresponding entry in box 9 of the VAT Return (read paragraph 7.3 for further explanation of this procedure).

If the report is made when the goods are brought into ‘home use’ and a VAT tax point created, NoTC 10 must be used (read paragraph 6.1 for more information on NoTC).

Bulk goods (this includes goods which will undergo a process or are mixed). The Intrastat report must be made when the goods enter the warehouse for the first time. If the goods are not immediately brought into ‘home use’, HMRC request that NoTC 17 be used to indicate situations where the goods are declared for Intrastat but not included in box 9 of the VAT Return.

When goods are initially reported using NoTC 17, report any future removal to ‘home use’ on the SD showing only the value (exclusive of VAT and Excise Duty) and NoTC 18, at the time of removal (read paragraph 7.4 for further explanation of this procedure). This procedure is not mandatory but this action will explain the discrepancy between box 9 of the VAT Return and Intrastat.

Excise Duty must always be excluded from the value reported for Intrastat.

Goods transferred from a UK excise warehouse directly to another EU member state (either to another excise warehouse or a customer), without being brought into ‘home use’, must be declared as a dispatch.

It’s possible that the businesses involved will not be registered for VAT in the UK. In these cases, if there’s no agent, the warehouse keeper will be responsible for making the Intrastat declaration (read paragraph 5.2).

A more detailed information sheet on Tax Warehouses is available on the uktradeinfo website (read paragraph 21.9).

17.3 Fiscal warehouses

Certain categories of goods from both EU member states and from non-EU sources can be put into fiscal warehouses in the UK. Such goods must be in free circulation, with any import VAT paid, before they can be admitted to the regime.

Intrastat reporting is required for those goods moving between fiscal warehouses in different EU member states. The value declared will be the value for VAT. However, HMRC request that NoTC 17 is used to show that there’s no corresponding value on the VAT Return (read paragraph 7.3).

It’s possible that the businesses involved will not be registered for VAT in the UK. In these cases, if there’s no fiscal agent, the warehouse keeper will be responsible for making the Intrastat declaration (read paragraph 5.2).

Further information about fiscal warehousing can be found in VAT Notice 702/8: fiscal warehousing.

17.4 Inward processing (IP)

The Intrastat treatment of the movement of IP goods depends on whether or not the movement has been reported on a Customs declaration.

If you send or receive IP goods where the movements have been reported on a Customs declaration, you must not include these movements on your Intrastat declarations. For statistical purposes, HMRC obtain the intra-EU movement data from the Customs information.

Any movements of IP goods that are not reported on a Customs declaration must be reported on your Intrastat declarations.

17.5 Onward Supply relief (OSR)

If you supply OSR goods to, or receive OSR goods from, another EU member state you must complete box 8 or 9 of the VAT return and include these movements on your SD.

For more information on OSR goods, read Notice 702/7: import VAT relief goods supplied onward to another country in the EC.

18. Triangulation

18.1 The meaning of triangulation

Triangulation is the term used to describe a chain of supplies of goods involving 3 parties, when instead of the goods physically passing from one party to the next, they’re delivered directly from the first party to the last in the chain.

Triangulation example

In this example a French company receives an order from a German company. To fulfil the order the French company in turn orders goods from its own supplier in the UK. The goods are delivered from the UK company direct to the German company.

18.2 How triangulation is reported for Intrastat purposes

Whatever the financial and invoicing arrangements, supplementary declarations must be made in accordance with the physical movement of the goods. If goods do not physically enter or leave the UK, no Intrastat declaration is appropriate here, but declarations will be required in the EU member states of dispatch and arrival.

Using the example provided in paragraph 18.1, a UK company concludes a contract with a French company and invoices them for the goods, dispatching the goods from the UK to the French company’s customer in Germany. As the movement of goods took place between the UK and Germany, the UK company must report this movement as a dispatch to Germany.

If however, a UK company receives an order from a French company and sources the goods from Germany and the goods are sent direct from Germany to France, the UK company will have no UK Intrastat reporting obligation as the physical movement of goods takes place between Germany and France.

A detailed Information Sheet on triangulation is available on the uktradeinfo website(read paragraph 21.9).

19. Leasing and hire

19.1 Operational leasing and goods on hire

Operational leases do not transfer ownership (that is, all the risks and rewards incidental to legal ownership) to the lessee. Under an operational lease, the lessee acquires the right to use durable goods for a certain period of time, which can be long or short and not necessarily settled in advance.

When the leasing period expires, the lessor expects to receive the goods back in more or less the same condition as when they were hired out, apart from normal wear and tear. Payments for the operational leasing of goods relate to the cost of using the tangible goods made available to a business through a leasing contract.

19.2 Financial leasing

Financial leases are generally paid in instalments and are calculated in a way as to cover all or virtually all of the value of the goods. At the end of the contract the lessee becomes the legal owner of the goods.

19.3 Intrastat treatment

Goods on hire or operational lease are excluded from Intrastat when the contract covers (or is intended to cover) a period of less than 2 years.

Goods on hire and operational leasing arrangements must be reported for Intrastat when the contract covers or is intended to cover a period longer than 2 years. NoTC 9 must be used to report these transactions.

Goods on hire or operational leasing which were not reported for Intrastat because their intended stay was less than 2 years must be reported if the goods are not returned after the 2 year period. The reference period will be the month in which the 2 year period expires. NoTC 9 must be used.

Goods involved in financial leasing must be reported under normal Intrastat rules using NoTC 1 when the goods first move.

Financial leasing can involve 3 parties:

• the supplier of the goods (Supplier)
• the recipient of the goods (Lessee)
• the payer of the cost of the goods (Lessor)

Direct leasing occurs when the supplier and the lessor are identical. Indirect leasing occurs when a leasing company (Lessor) buys the goods from the producer or supplier and subsequently leases the goods to the lessee. The goods are delivered from the supplier to the lessee. Trade statistics must record the trade flow between supplier and lessee.

Examples of operational and financial leasing:

Operational lease

A French company acquires the right to use a motor vehicle from a German hire company. The length of the hire is set at 6 months. Payments for the lease relate to the cost of using the motor vehicle. As the payments are for the supply of a service (hiring the vehicle) and the length of the lease is less than 2 years, this transaction is excluded from Intrastat.

Financial lease

A UK company contracts to purchase a machine from an Irish company. The purchase is financed by a UK bank, but the goods are delivered direct to the UK company. This supply is included within Intrastat and as the UK company has ordered and received the goods it is responsible for reporting the goods as an arrival.

A detailed Information Sheet on leasing is available on the uktradeinfo website (read paragraph 21.9).

20. Classification simplifications

20.1 Low value consignments

Transactions (that is, invoice lines) with a value of £175 or less can be aggregated and classified to a single commodity code (9950 0000).

When this code is used the only other details required are the value of the goods and the EU member state the goods were either dispatched to, or received from (however, if you submit your data by EDI you must still complete all other mandatory boxes).

You can, where possible, aggregate items declared under this commodity code (read paragraph 4.5 e).

This concession can be restricted where the bulk of trade or large total values are declared.

HMRC can withdraw this facility if your compliance falls below an acceptable standard.

A detailed Information Sheet on low value consignments is available on the uktradeinfo website (read paragraph 21.9).

20.2 Industrial plant

You can use a simplified procedure for declaring the arrival or dispatch of the component parts of a complete industrial plant (with a value of more than €3 million) which are moved in several consignments over a period.

‘Industrial plant’ is defined as ‘a combination of machines, apparatus, appliances, equipment, instruments and materials which together make up large-scale, stationery units producing goods or providing services’. The essential character of the overall product is assigned to the most appropriate commodity within the ICN.

‘Component part’ is defined as ‘a delivery for an industrial plant which is made up of goods which all belong to the same chapter of the ICN’.

Code numbers for the complete industrial plant subheading are composed as follows:* the code must be eight digits

• the first 4 digits are 9880
• the 5th and 6th digits correspond to the chapter in the ICN to which the component part belongs
• the 7th and 8th digits are 0

For example, if a consignment of steel pipes (normally classified under chapter 73 of the ICN) is dispatched as part of the construction of a complete industrial plant, the commodity code under this concession would be 9880 7300.

20.3 Mixed consignments of motor vehicle or aircraft parts

You can use a simplified procedure for declaring mixed consignments of motor vehicle or civil aircraft parts with a value of less than £600 by classifying the goods to special commodity codes.

The following specific conditions apply to the use of the classification concession for motor vehicle parts:

• the commodity code to be used is 99908700
• single items of £600 or more in value are ineligible for this concession and must be correctly classified
• engines, axles and gearboxes are ineligible for this concession and must be properly classified irrespective of their value
• a consignment of easily identifiable parts must be classified using the correct commodity code(s)

The following specific conditions apply to the use of the classification concession for aircraft parts:

• the commodity code to be used is 99908800
• single items of £600 or more in value are ineligible for this concession and must be correctly classified
• a consignment of easily identifiable parts must be classified using the correct commodity code(s)

When the concessionary codes are used, the quantity must be shown as net mass (in kilos). A qualified estimate can be used where necessary. These concessions are for Intrastat only.

If you use an agent to complete Intrastat SDs on your behalf you must inform the agent of these conditions and make sure that the agent complies with them.

21. Other goods movements

21.1 Mixed supplies of goods and services

A typical example of mixed supplies of goods and services is where a business supplying goods also supplies the service of installing them in the member state they were dispatched to.

Goods dispatched from the UK as part of a mixed supply of services (such as installation or assembly) in another EU member state must be included in the UK business’ SD. The value is the cost of the goods at the time of dispatch.

Goods arriving in the UK as part of a mixed supply of goods and services are declared as arrivals.

When the contract for goods includes a service element (for instance labour), the value of the service provided must be excluded from the value of the goods reported. Where the service is not separately identified, the total value of the contract can be reported.

If the supply is essentially a supply of services but includes some goods as part of the supply, and the goods element is genuinely trivial, you can ignore the goods movement totally for Intrastat.

21.2 Supplies to territorial enclaves

For the purposes of Intrastat, territorial enclaves include:

• embassies
• consulates
• national armed forces stationed outside the territory of the mother member state
• other similar emplacements that are usually established by treaties between sovereign member states

Movements of goods between an EU member state and its territorial enclaves established in another member state are considered an internal flow and therefore must not be included on an Intrastat SD. In addition, goods moving between the host member state and territorial enclaves of other member states or international organisations are excluded from Intrastat.

This means that if you supply goods from the UK to a British Embassy or a British Armed Forces base (such as the bases in Germany but see below for the bases situated in the Republic of Cyprus) situated in another member state you must not report these supplies as a dispatch. This includes supplies made to a Naval, Army and Air Force Institute (NAAFI) found within British Armed Forces bases as well as supplies to personnel (both military and civilian and including their dependents) within such bases, including supplies made by the British Forces Post Office (BFPO).

However, the UK Sovereign Base Areas (SBAs) situated in the Republic of Cyprus (RoC) are considered to be part of the statistical territory of Cyprus. Therefore, movements between the UK and the SBAs will require an Intrastat declaration with the partner country code CY.

As goods moving between the host member state and territorial enclaves of other member states or international organisations are also excluded, the supply of goods to the embassy of another member state situated within the UK must not be declared as a dispatch. For example, if you supply goods to the French Embassy in London you must not declare this as a dispatch to France.

21.3 International Collaboration Defence Projects (ICDP)

Collaboration projects, by their nature, normally involve the movement of high value goods between the participating EU member states. It’s vital that Intrastat declarations are made when they fall within the terms for reporting data. Therefore, except where allowed for below, all EU movements of goods under an ICDP (excluding goods sent or received for repair, read paragraph 9.1 for a definition of repair) must be reported for Intrastat purposes.

As a general guideline, the following rules apply:

Arrivals

The ultimate UK recipient of the goods will be responsible for declaring arrivals.

This places the responsibility on the UK business which receives the goods for processing and away from the incidental involvement of carriers, Project Management Offices or overseas prime contractors. When the Ministry of Defence (MOD) is the final recipient of the goods, they’re responsible for completing an arrivals SD.

Dispatches

The UK contractor responsible for the movement of the goods is responsible for making the dispatches declaration. The declaration must be made when the goods move from the contractor, even if the goods are sent by MOD stations, for example RAF Stafford.

Temporary movements

As a general rule the terms of paragraph 10.1 are to be followed.

However, where goods sent for testing are tested to destruction, but were expected to qualify as a temporary movement at the time of dispatch, an Intrastat declaration is not required.

If it’s known at the time of dispatch that the goods will be tested to destruction, a dispatch declaration is required.

If you’ve any questions about collaboration projects, you can contact the Helpline on Telephone: 0300 200 3700 in the first instance.

21.4 Free of charge goods

Goods which are supplied or received free of charge will not have a taxable value, but do have a positive value for statistics. This must be reported with full line detail (using NoTC 3) on a Supplementary Declaration.

The value of free of charge goods will normally be the amount which would have been invoiced in the event of a sale or purchase of the goods. If you’re having difficulty arriving at a value, read paragraph 5.7.

21.5 Electricity and gas

The data collected on electricity and natural gas is based on the physical flow of each commodity (rather than using fiscal amounts, or invoiced quantities).

HMRC collect data on the actual ‘flow’ of electricity and natural gas from operators who control the cross-frontier flow.

HMRC will inform the operators of all cross-frontier facilities that have been identified as responsible for providing the required data.

Therefore, unless specifically advised by HMRC, there’s no requirement for UK electricity and gas wholesalers to supply Intrastat declarations for electricity or natural gas intra-EU sales or purchases.

21.6 Chain sales (oil industry)

Movements of oil which are reportable as dispatches are defined as ‘the first CIF sale’ (for crude oil) or ‘the first CIF sale with electronic Administrative Document (eAD)’ (for refined products). The majority of transactions reported will fall within these definitions. However, 2 significant exceptions have been identified and these must also be included on dispatch declarations:

• where a business sells Free on Board (FOB) but arranges the transport and passes the cost on to the buyer in a separate contract
• FOB sales to parent or affiliated companies elsewhere in the EU if it’s known that these movements will not otherwise be reported for Intrastat, this treatment has been agreed with the UK Oil Industry Indirect Taxes Committee

21.7 Unusual trade

Unusual trade occurs when a business that normally has little or no trade with other EUmember states exceeds the Intrastat threshold because of ‘one-off’ trade. This could happen if they furnish an office with purchases from another EU member state, thus exceeding the arrivals threshold. Or exceed the dispatch threshold by taking advantage of a window in the market to sell a large quantity of goods to businesses in other EUmember states.

If your unusual trade takes you over the Intrastat threshold, you must submit supplementary declarations until the end of the calendar year. If you then find that because of the unusual trade, you’ve exceeded the threshold for the following year, you must continue submitting supplementary declarations until the value of your trade with other EU member states falls below the threshold.

HMRC cannot exempt businesses from the requirement to submit SDs if they have exceeded the Intrastat threshold but there’s also no legal obligation to submit nil returns. If you do not expect to have any further trade with other EU member states during the calendar year, email: intrastatenquiries@hmrc.gsi.gov.uk who will, as a concession, input nil returns on your behalf.

Your VAT Returns will be monitored to make sure there’s no subsequent EU trade.

If you find yourself in the position of having a ‘one-off’ transaction which takes you over the Intrastat threshold and you do not expect to have any further EU trade, contact Intrastat Enquiries on the above number and they’ll be able to offer you the concession mentioned above.

This will not exempt you from submitting a supplementary declaration if you subsequently have any EU trade within the calendar year in question.

21.8 Other miscellaneous goods movements

The following information provides a summary of some of the special treatments that apply to certain supplies of goods:

Type of Supply	To be included in Supplementary Declarations?	Value to be declared or further information
a. Gifts:
– Costing no more than £10 and not part of a series of gifts to the same person	No
– Other gifts	Yes	Cost of goods (what it would cost to purchase similar goods)
b. Goods for sale at auction in another member state: Works of art exhibited with a view to sale. Fur garments, precious stones, carpets and jewellery consigned on approval (time limit 4 weeks)
– Initial movement	No
– Goods sold	Yes	Price realised
– Returned unsold	No
c. Exchange of goods	Yes	Cost of goods
d. Goods subject to Prompt Settlement Discount	Yes	Invoice or contract price in full. Only if you know that such transactions are always settled within the prompt settlement period can you use the discounted value.
e. Crude oil shipped from UK North Sea platforms to UK	No
f. Samples and advertising material which have a commercial value and are not supplied free of charge	Yes	Cost of goods
g. Samples and advertising material which are supplied free of charge	No
h. Emergency aid for disaster areas	Yes	Cost of goods
i. Monetary gold	No
j. Means of payment which are legal tender and securities	No	This refers to monies (including coins) and securities in circulation and includes payments for services such as postage, taxes and user fees.
k. Means of transport travelling in the course of their work, including spacecraft at the time of launching	No	In other words no change of ownership of the means of transport takes place
l. Goods for testing which are temporary trade	No	Read paragraph 10.1 for further information
m. Goods for testing which, at the time of dispatch, it is thought will be temporary trade but which are subsequently tested to destruction	No
n. Goods for testing which, at the time of dispatch, it is known will be tested to destruction	Yes	Cost of goods
o. Goods supplied using the Margin Schemes for second hand goods	No	Includes supplies made using the Auctioneers Scheme and Global Accounting. For further information on the Margin Schemes for second hand goods, refer to VAT Notice 718: the VAT Margin Scheme and global accounting and VAT Notice 718/2: the VAT auctioneers’ scheme
p. Subscriptions to newspapers and periodicals supplied direct to the subscriber	No

21.9 Further information on Intrastat

HMRC publish Intrastat Information Sheets on the uktradeinfo website to explain some of the more problematic areas of Intrastat in more detail than is possible in this notice.

Information sheets are available on the following subjects:

• an explanation of the Intrastat data fields
• call-off stock and consignment stock
• commercial samples and advertising material
• credit notes
• exchange goods in repair contracts
• grain string sales
• group VAT registration and Intrastat
• Intrastat and the Island of Cyprus
• Intrastat thresholds (1993 to date)
• low value threshold
• operational and financial leasing
• process
• sale or return
• sea products
• tax warehousing in the UK
• triangulation
• who is responsible for making the Intrastat report (SD)?
• why is Intrastat important?

If you’ve a subject you think would benefit from a more detailed explanation on an Intrastat Information Sheet, email: uktradeinfo@hmrc.gsi.gov.uk.

22. Publication of trade statistics

22.1 Online

A wide range of trade information, including detailed trade at commodity code and country level, is available free from our uktradeinfo website.

23. ’uktradealert’

23.1 Email alert service

‘uktradealert’ is a free email alert service for UK importers, exporters and associated businesses available on the uktradeinfo website.

‘uktradealert’ covers a wide range of information from a variety of government departments and has a sector dedicated to Intrastat news.

Information is also available from the following sectors:

• HMRC (various sectors, for example, Excise, VAT Notes, NES, CHIEF and Tariff Classification)
• Department for the Environment and Rural Affairs (DEFRA)
• Department for Business, Energy and Industrial Strategy (BEIS)
• EU Trade and EU Taxation and Customs Union (including advice about Anti-Dumping Duty)
• Office for National Statistics (ONS)
• Rural Payments Agency (RPA)
• Food Standards Agency (FSA)

The service also gives you an opportunity to take part in surveys and the chance to assess new products.

Once the simple registration procedure has been carried out, email alerts will be sent to you whenever there’s new information from any of your chosen sectors.

Your rights and obligations

Your Charter explains what you can expect from HMRC and what HMRC expect from you.

If you have any comments or suggestions

If you’ve any comments or suggestions to make about this notice, write to: