Intrastat UK 2024: Is reporting still mandatory?

Since the end of the Brexit transition period in January 2021, the United Kingdom has entered a new trade reality. Changes in foreign trade significantly affect e-commerce entrepreneurs, especially concerning Intrastat reporting. In this article, we will discuss important issues regarding Intrastat thresholds and their implications for online sellers.

Trade with the United Kingdom

After leaving the European Union, the United Kingdom faced new trade challenges. Trade in goods between the UK and the EU no longer requires Intrastat reporting. However, there is an exception for trade with Northern Ireland, which still falls under Intrastat requirements. As a result, exports and imports to Northern Ireland should be reported as part of Intrastat reporting using country code XI.

Intrastat Thresholds 2024

Companies must submit Intrastat declarations if the relevant threshold is exceeded. Businesses with trade (both imports and exports) below £24 million are not required to provide delivery terms information in their Intrastat declarations.

If this threshold is exceeded within a calendar year, delivery terms information is not required until January 1st of the following calendar year, unless imports and/or exports remain above the set threshold for the new year. The thresholds in Northern Ireland are as follows:

Export:

• Basic: £250,000
• Detailed: £24 million

Import:

• Basic: £500,000
• Detailed: £24 million

INTRASTAT rates applicable in other countries can be found on our website: Current Intrastat thresholds and VAT rates in Europe.

UK Intrastat Declarations – Deadline and Submission Method, Zero Declaration, and Penalties

Intrastat declarations must be submitted monthly and sent within 21 days from the end of the month in which the company traded with the EU (e.g., Intrastat declarations for March must be filed by April 21).

Declarations must be submitted electronically. The system is available to all companies, including branches of companies submitting data independently of their location, and for entities submitting declarations on behalf of Intrastat companies. The system can be accessed using a username and password on the GOV.UK or UK Trade Info website.

There are two methods for completing the declaration:

• Direct data entry on the online form; or
• Using the offline option using a CSV (Comma Separated Variable) file.

No action is required for errors concerning commodity codes, values, country of origin or destination of goods, or when goods are reported in the wrong period, unless the error value on a single data line exceeds £10,000.

Corrections must be made online. The online correction form is available at: https://www.uktradeinfo.com/intrastat/amendment/.

If there is no trade with the EU in a specific period, zero declarations do not need to be submitted, although it is recommended to avoid unnecessary inquiries and letters from the British counterpart of the Polish tax authority HMRC (Her Majesty Revenue & Customs).

It should be noted that penalties may be imposed on companies for late submission, incorrect, or incomplete Intrastat declarations, so it is worth seeking the assistance of experts: Contact us – amavat®.

VAT Rates in the UK

In the United Kingdom, three VAT rates apply: 20%, 5%, and 0%. The standard VAT rate of 20% applies to all goods and services not subject to reduced rates. The 5% rate applies to selected products and services, such as some social housing, social services, energy-efficient home installations, electricity supplies, and some medical products. The 0% rate includes, among others, books, newspapers, prescription pharmaceuticals, food, and transportation services.

VAT Registration in the UK

Since February 1, 2020, when the UK left the European Union, trade and tax regulations have undergone significant changes. As a result, entrepreneurs selling goods or services subject to taxation and not domiciled in the United Kingdom are required to register for VAT purposes in the UK. Registration is also required for storing goods in the UK and importing goods into Europe through this country. Additionally, selling goods to consumers in the UK via the Internet, exceeding a certain limit, organizing ticketed events and exhibitions, receiving services in the UK according to the reverse charge principle, and independently delivering goods, all require VAT registration. After Brexit, the VAT OSS system no longer operates in the UK, meaning that it is not possible to settle B2C sales to the UK under this system, requiring entrepreneurs to adapt to new tax regulations and procedures.

You can learn more about VAT registration in the UK from our article: https://amavat.eu/uk-vat-registration/.

Summary

In summary, for e-commerce sellers operating in the British market post-Brexit, changes in Intrastat reporting and the VAT system are significant. It is important to monitor Intrastat thresholds, declaration deadlines, and comply with new tax regulations. It is advisable to seek expert assistance to avoid penalties for errors or delays. Flexibility and knowledge of Intrastat regulations are crucial for the smooth operation of businesses when trading with the United Kingdom post-Brexit.

If you have any questions or need additional information, we encourage you to contact our team of experts, ready to provide help and support: Contact us – amavat®.