Intrastat is the system for collecting statistics on the movement of goods between Member States made by VAT-registered businesses.
The EU Commission has proposed regulation, called FRIBS (the Framework Regulation Integrating Business Statistics), with an aim to modernise the Intrastat system as part of its more expansive project to harmonise the collection of business statistics throughout the EU. Initially expected to be implemented from 2020, the changes will now come into effect as of 1st January 2022.
Under the changes which relate to Intrastat, from January 2022 the requirement for EU Member States to submit their statistical data to Eurostat will be restricted to dispatches (sales) only. Reporting data relating to arrivals (acquisitions) will no longer be necessary. But individual national tax authorities may still decide to maintain their arrivals declarations on a local level.
The proposed legislation also provides for new mandatory data fields, namely that declarants will be required to provide the recipient’s “VAT number” and the goods’ “country of origin” in the dispatch declaration. Moreover, the collated data will need to provide a greater level of detail than at present.
Once the changes are implemented, companies will need to ensure they make any necessary changes to ERP and other systems so they can populate this new data in the Intrastat dispatch declaration. In recent years, certain Member States such as Hungary, Belgium and Portugal have pre-empted the EU’s plan and have already started to collect the additional Intrastat information.
Contact our VAT experts now and find out how these developments could affect your business.