Brexit and Intrastat: how to report Intrastat around & after Brexit?
As of January 1, 2021, the United Kingdom will no longer belong to the European Union and therefore become a non-EU country. What does this mean for your Intrastat obligations?
Intrastat obligations are obligations imposed by Eurostat. Eurostat is the statistical office of the European Union that publishes reliable statistics and indicators for each European country, making it possible to compare countries and regions. In the Netherlands, Intrastat returns are submitted to the Statistics Netherlands (CBS).
Despite the fact that the UK (except Northern Ireland) no longer belongs to the EU from January 1, 2021 onwards, HMRC has confirmed that for the first six months in 2021 there is still an obligation to submit the Intrastat declarations for the Intrastat EU arrival in the UK.
Six months extra preparation time for Brexit
The reason for this is that HMRC has given companies the option to make use of six months extra preparation time in order to properly arrange all matters concerning imports and to declare the transactions of other EU countries in the import declaration to the customs authorities.
Some companies will have arranged everything by January 1, but there will also be companies that need more time for preparation and will therefore make use of this option. In order not to miss any data, it was therefore decided to have the Intrastat arrival declaration continue for another six months. Although the UK wants to receive the Intrastat from the EU acquisition, there is no longer any obligation for the other EU countries to declare transactions to the UK in the Intrastat dispatch declaration.
What does this mean for your existing processes?
From January 1, 2021 onwards, there will be 2 different scenarios: one from a UK perspective and one from the EU Member States’ perspective:
Scenario 1: UK companies that have dispatches and arrivals with EU Member States:
- All shipments from the UK to the EU do NOT have to be declared in the 'Intrastat dispatch’ in different countries.
- All shipments from the EU to the UK STILL have to be declared in the ‘Intrastat arrival’ in different countries.
Scenario 2: EU companies that have dispatches and arrivals with the UK:
- All shipments from the EU to the UK (except Northern Ireland) do NOT have to be declared in the ‘Intrastat dispatch’ in different countries.
- All shipments from the UK to the EU (except Northern Ireland) do NOT have to be declared on the ‘Intrastat arrival’ in different countries.
As you can see there is a difference between reporting in the UK and the EU. You may need to report both the import and the Intrastat in the UK. Wo we would advise you to start mapping the data changes related to Intrastat on time.
In the data used for Intrastat declarations (whether this is data from ERP systems, logistics data, etc.), dispatches and arrivals between the UK and other EU Member States must be correctly classified for the various obligations (from the UK perspective but also from the EU Member States' perspective).
You therefore need to adapt your systems accordingly. This can create challenges, such as converting the master data and settings (the UK must be considered a non-EU country in your system, however, there must still be data available for the arrival). These changes not only have an impact on the Intrastat reporting but also on your VAT and customs related reports. It is therefore important to know the impact of the changes made.
Start in time with mapping the data changes related to Intrastat and adjust your systems!
Are you also interested in Brexit consequences for other trade compliance areas? Our specialists created a Brexit whitepaper with practical steps your company can take to be fully prepared for Brexit. Action points are addressed regarding Customs, Export documents, VAT, Intrastat and Environmental. Download here the Brexit Whitepaper.