The Intrastat declaration is a requirement for companies engaged in intra-Community trade within the European Union, the main purpose of which is to collect statistical data on the exchange of goods between Member States. If we are required to submit an Intrastat declaration, we would do well to be fully aware of the obligations and the complete procedure for submitting this declaration correctly in both form and content. And to do so, we must not get the Intrastat deadlines wrong.
It is a term that is generally quite unfamiliar at the national administrative level, but for many medium-sized and large companies in Spain, it is of vital importance. Here at Taxmind, we want to discuss and explain the Intrastat system and its correct management in depth.
The Intrastat declaration and its system within the European Union
The Intrastat system and declaration is a key tool for compiling trade statistics within the European Union. It enables detailed monitoring of the movement of goods between Member States.
Intrastat is a system established to obtain accurate data on intra-Community trade. The data provided is used in the formulation of trade policies that promote economic growth and development within the EU.
Scope of application and member states
The scope of the Intrastat system covers all countries of the European Union, as well as Northern Ireland. This means that any trade in goods between these states is recorded under this system. Each member state is responsible for collecting and submitting the information to the EU authorities, thereby ensuring a continuous flow of statistical data.
Types of intra-Community transactions recorded
Intra-Community transactions recorded under the Intrastat system and declaration include various types of trade in goods, such as:
- Purchases of goods from other Member States.
- Sales of goods to other EU countries.
- Temporary exchanges of goods for commercial purposes.
These transactions provide a comprehensive overview of intra-Community trade and are essential for carrying out accurate economic analyses.
Submitting Intrastat: Obligations in the declaration
The obligations incumbent on businesses engaged in intra-Community trade when submitting the Intrastat declaration are very clear. But does this apply to all businesses?
Companies that operate as VAT-registered entities and carry out exchanges of goods with other Member States of the European Union are obliged to submit the Intrastat declaration.
However, there are exclusion criteria that may apply:
- Companies whose turnover does not exceed the established thresholds.
- Entities that do not carry out intra-Community transactions during the reporting period.
Mandatory thresholds in Spain
There are two types of thresholds for filing the Intrastat declaration in Spain:
☑️ Threshold for incoming Intrastat (purchases)
Submission of this declaration is mandatory for companies exceeding an intra-Community acquisitions threshold of €600,000 per year.
☑️ Threshold for outgoing Intrastat (sales)
Furthermore, if the total value of intra-Community sales exceeds €400,000 per year, the corresponding declaration must also be submitted.
Declarations with and without transactions
Businesses are required to submit returns even in months where no transactions have taken place. These are known as returns with no transactions.
This is to avoid penalties, as compliance with regulations continues to be demonstrated even during periods of commercial inactivity.
Intrastat deadlines: Reference period for submitting the declaration
Adherence to Intrastat deadlines ensures that the declaration is submitted correctly. These deadlines are based on a calendar month and are subject to cut-off dates that businesses must observe.
The reference period for the Intrastat declaration is always the calendar month corresponding to the transactions carried out. This means that businesses must take into account all intra-Community transactions that have taken place during that month.
Deadline for monthly submission
Companies must submit their declarations by the 12th of the month following the reference period. For example, if transactions take place in January , the corresponding Intrastat declaration must be submitted by 12 February to avoid penalties.
Extension of the deadline on non-working days
If the 12th falls on a Saturday, Sunday or public holiday, the Intrastat submission deadline is extended to the next working day.
- Transactions carried out in January: Declaration by 12 February.
- Transactions carried out in July: Declaration by 12 August.
- If the 12th is a public holiday, the declaration must be submitted on the next working day, such as the 13th or 14th.
Procedure for submitting the Intrastat declaration in Spain
Submitting the Intrastat declaration requires following a series of steps via an electronic system to ensure the information is submitted correctly. This procedure is designed to help businesses meet their tax obligations efficiently.
The first step is to access the Tax Agency’s electronic system. This system, known as ‘DEB’ (Basic Statistical Document), allows Intrastat declarations to be submitted quickly and easily.
Once logged into the system, the declarant must identify themselves using their tax identification number. This ensures that the submission is linked to the correct entity, thereby meeting registration requirements.
☑️ Selecting the type of declaration and reporting period
The next step in submitting an Intrastat declaration involves selecting the type of declaration to be submitted. Depending on the transactions carried out, you must choose between an import or export declaration.
Inward declaration
This type of declaration relates to intra-Community acquisitions and is mandatory when the established thresholds are exceeded.
Outward declaration
In this case, it relates to intra-Community sales and is also mandatory if the relevant conditions are met.
☑️ Completing the electronic form
Another crucial stage. All required data must be entered accurately.
Required information on the goods
Detailed information on the goods must be provided, ensuring that the data is clear and correct.
Quantity, value and description of transactions
The quantity, value of the goods and a precise description of the transactions carried out must be recorded to facilitate statistical analysis.
☑️ Generating and sending the electronic file
Once the form has been completed, the electronic file is generated. This step must be carried out meticulously to avoid errors that could lead to problems later on.
☑️ Confirmation and filing of the submission receipt
Once submitted, you will receive an electronic confirmation.
We recommend filing this receipt, as it will serve as proof in the event of future reviews or audits.
Management of obligations during the calendar year
Managing tax obligations in relation to Intrastat requires continuous monitoring of intra-Community transactions throughout the year.
In this regard, it is mandatory to keep a rigorous record of all intra-Community transactions. Thanks to this monitoring, transactions can be classified appropriately and it can be assessed whether the thresholds established for the submission of declarations are being met.
Businesses must identify when they exceed the mandatory thresholds. The thresholds refer to specific annual values for purchases and sales. By maintaining constant monitoring, businesses will be better prepared to fulfil their Intrastat filing obligation at the appropriate time.
Submission in months with no transactions and justification
In months where no transactions have taken place, it is still necessary to submit returns, as we have already mentioned. This requirement ensures that the tax authorities maintain full control over intra-Community trade , regardless of whether there are any trading activities in a given month. The submission of these returns is justified by the confirmation that no transactions took place.
Intrastat returns and the most common errors
The main issues we have identified are validation checks and potential errors in the form. When completing it, automatic validation checks may flag inconsistencies. We must check:
- Incorrect or incomplete identification details.
- Inconsistencies in the commodity codes.
- Errors in the quantity and declared value.
When a problem is detected, a message will appear to help you correct the information before submission. These alerts help us optimise the submission.
Cancellation and correction of submitted declarations
If there are errors in a declaration that has already been submitted, corrections can be made. You can cancel the original declaration and submit a new one. You will need to log in to the Tax Agency’s system, identify yourself as the declarant and select the relevant correction option.
Recommendations to avoid penalties
Submitting within the Intrastat deadlines mentioned above will save us from penalties. We recommend regularly monitoring intra-Community transactions and checking the reporting thresholds. And always, always, keep detailed records of the transactions carried out.
Practical aspects and tips for a correct Intrastat submission
Given our extensive experience as an international consultancy in Barcelona spanning decades, our sole objective when submitting Intrastat is to ensure the declaration is completed efficiently and without errors. To this end, having a well-defined methodology and implementation protocol is highly beneficial.
We must always keep a meticulous record of all intra-Community transactions. This makes it easier for companies to compile the data required for the declaration and ensures that no important transactions are omitted. Should an audit or inspection take place unexpectedly, the company would have sufficient information to substantiate every transaction in the trade flow.
Checking and updating official codes and descriptions
We recommend periodically reviewing the codes and descriptions used in commercial transactions. Why? To ensure that the information submitted is accurate and complies with current regulatory requirements.
Planning to meet filing deadlines
Planning ahead is key to avoiding surprises. You need to draw up a schedule that includes:
- Deadlines for data collection.
- Reminders for monthly submissions.
- Time for reviews before final submission.
Finally, we should make use of the digital tools available to simplify processes. This means, for example, familiarising yourself with the interface of the electronic form, or saving a PDF copy of the submitted declaration.
Frequently asked questions about submitting the Intrastat declaration
To summarise and bring together everything discussed about the Intrastat system and declaration, these common questions are sure to resolve any queries you may still have after reading the post.
☑️ Who is required to submit the Intrastat declaration?
Businesses operating as VAT-registered entities that carry out trade in goods between EU Member States are required to submit the Intrastat declaration if they exceed the established thresholds. This includes both intra-Community purchases and sales.
☑️ What happens if the Intrastat return is submitted after the deadline?
Submitting your return after the deadline may result in financial penalties. The Tax Agency may impose fines depending on the severity and frequency of the non-compliance. You must meet the Instrastat deadlines to avoid these penalties.
☑️ What should you do if you have not carried out any transactions in a month?
If no transactions have taken place during a month, it is mandatory to submit a ‘no transactions’ declaration. This allows the Tax Agency to maintain an up-to-date record and avoid penalties for failure to submit.
☑️ Can I submit the declaration at any time within the deadline?
It is possible to submit the return at any time before the deadline, which is the 12th of the following month. However, it is recommended that you submit it as soon as possible to avoid any complications.
☑️ What documentation should I keep after filing?
It is advisable to keep a file containing the confirmation of the return’s submission and any supporting documentation relating to intra-Community transactions. This will be necessary should you need to justify any information to the Tax Agency (in the event of audits or requests).
Conclusions
The concept of the Intrastat declaration may not have been familiar to us at first, but it is clear that, if we are managers of a company with commercial relations with other companies in EU Member States, the information in this article will not have come as a surprise.
We now know how to file Intrastat in both form and substance, the consequences of not doing so correctly, and the purpose of this process. The Intrastat deadlines have also been clarified: at any time before the deadline, which is the 12th of the following month.
That said, should you have any queries or require advice, we at Taxmind would be delighted to assist you.
