If your business is registered for VAT in the UK and you sell goods or services to VAT registered customers in other EU countries you are required to submit an EC sales list (known as ECSL or form VAT 101) to HMRC.
Why HMRC needs EC Sales Lists
The information you give on the ESL is used by the tax authorities in other EU countries. They use it to check that the businesses you've supplied your goods and/or services to are dealing with the VAT correctly.
The details are also used to build up anonymous statistics showing how goods are traded in the EU.
The same thing happens if your business receives goods from a supplier in another EU country. Your supplier also completes a similar sales list showing the value of the goods and/or services they've supplied to you.
EC Sales Lists - the basics
All VAT-registered businesses in the UK that supply goods to a VAT-registered customer in another EU country must provide HMRC with information about the supplies.
There is no threshold for ESLs - you must list every supply, no matter how small.
- You submit the details on what's known as an ESL.
- This contains details of:
- Your customer
- The relevant country code
- The value of the goods and/or services
An EC Sales Declaration
Goods
The ECSL is generally submitted quarterly, but businesses that export goods totalling more than £35,000 (excluding VAT) per quarter must complete an ECSL every month.
When you completes box 8 on their VAT return because you have sold goods to a VAT registered business in another EU country, the Tax Office will automatically send you an ECSL form to complete.
If you move your own goods to a branch or subsidiary of your business in another EU country, this movement is treated the same as if to a third party and will also have to be entered on the ECSL for that period.
The paper ECSL form must be submitted within 14 days of the end of the reporting period. You can also complete the ECSL online, and have 21 days from the end of the period to submit the form. Note that this deadline is well before the deadline for your regular quarterly VAT return
Services
If your business only sells services to other EU countries you can continue to submit a quarterly ECSL, but they can opt to submit monthly ECSL forms. You will not have entered this sale in box 8 of the VAT return so there is no reminder that you have to complete an ECSL.
If your client moves their own goods to a branch or subsidiary of their business in another EU country, they may also have to complete an ECSL for that period.
Ann Hughes
Superlative style of forming that each new blogger tries to have.Report and Accounts
ReplyDeleteBeing a freelance content writer, I was literally confused about my tax status, and at the same time, I was afraid of the consequences of tax investigations, so I considered it necessary to consult a professional tax advisor, and stop worrying unnecessarily.
ReplyDeleteLand advertising in the bay has been relied upon to make its wide recuperation in the coming couple of months and proceed with further. As indicated by monetary specialists, six noteworthy patterns are normal for deciding this current area's market for the rest of the piece of the year and for the not so distant future. central park dubai
ReplyDeleteStudying every year is getting harder and harder, but it didn't scare me, because I have a great site https://www.masterpapers.com/ where writers write the most difficult written work instead of me.
ReplyDelete