With the creation of the single market in 1993, the free movement of goods and services created new obligations for businesses. The EC Sales list declaration to combat intra-community VAT fraud is an example.
EC Sales list is a mandatory tax declaration for any intra-community delivery operation, which means transfer of goods or services from one EU country to another EU country. This list allows for cross-checking between sellers and buyers with the aim of ensuring that intra-community VAT is properly liquidated in the Member State of destination.
Threshold and Frequency of Declaration
There is no threshold to be crossed: declaration is mandatory from the first euro of transaction.
The frequency of declaration can be monthly, quarterly or annual depending on the thresholds defined by each country. Typically, the filing of the EC sales list declaration accompanies the VAT declaration and follows a monthly trend.
It is filed with the tax authorities in the country concerned.
Elements of the EC Sales List
This is a simple declaration which includes the following information for each customer:
- Goods or services sold
- Country of destination of goods
- The recipient’s VAT number
- The total amount of deliveries for this period
Sanctions
Failure to file a declaration may result in rejection of the company’s VAT exemption.
Differences with Intrastat
The Intrastat declaration and EC sales list both relate to intra-community transactions but are mainly distinguished by their objective, contents and destination.
Indeed, EC sales list is a tax declaration submitted to the tax authorities relating to intra-community deliveries while Intrastat is a statistical declaration, submitted to the customs and statistical authorities.
Main differences between EC sales list and Intrastat:
- Intrastat declarations provide more comprehensive and detailed information on the movement of goods within the European Union
- Existence of declaration threshold for Intrastat
- EC sales list covers intra-Community deliveries only (with some exceptions), whereas Intrastat also applies to intra-Community acquisitions
- Intrastat includes only information on transfers of goods, not services
- Intrastat’s periodicity is fixed and monthly, while the EC sales list differs from country to country
Declaration requirements:
| Introduction | Shipping | |
| Intrastat threshold not crossed | No declaration | EC Sales list |
| Intrastat threshold crossed | Intrastat | EC Sales list + Intrastat |
