European Union Intrastat Reporting and VAT Reconciliation


ERP Configuration Challenge

For ERP implementations in Europe, a number of specific statutory, tax, and accounting requirements are of great significance and need to be included early on in the planning and design process.  Celantra Systems has a thorough experience in these implementations and an outstanding track record of working with many US based Fortune 100 and Fortune 500 companies. Our network of consultants and associates is well versed in the specific legal requirements and trained to guide you through the development of an efficient and cost-effective ERP design with 100% compliance. This Celantra Solution Offering addresses the Intrastat reporting and its integration with VAT reporting.

Key areas of EU requirements are:

  • VAT reporting for domestic, Intra-EU, and Import/Export transactions
  • goods movement reporting for export/import (Customs) and intra-EU (Intrastat)
  • document format requirements
  • financial reporting presentation and system audit requirement (numbering and sequencing)
  • data privacy and data security requirements especially for data storage outside of the European Union 

Companies are obligated to provide detailed statistical information regarding the movement of physical goods between EU countries.  These reporting requirements were established as the customs boundaries and controls have been removed between EU member countries.  The national authorities collect the following data:

  • identification number allocated to the party responsible for providing information (VAT Registration number)
  • reference period
  • flow (arrival, dispatch, shipment, receipt)
  • commodity  (Commodity Code in detail varying by country)
  • value of the goods (customs value including freight)
  • quantity of goods
  • partner Member State  (EU Country)
  • nature of the transaction (Sale, Return, Purchase, Consignment, Contract Manufacturing)

No taxes or fees are directly connected with Intrastat reporting.  However, government audits have become common during the last decade.  Increasingly, Intrastat reports are also used to audit VAT report submissions, in which case errors and mismatches can be very costly.  Many of the EU business transactions must match in both reports, although the specific requirements are not identical.  For example intra-EU services are included in VAT, but excluded in Intrastat reports, while consignment transactions are not necessarily reported in VAT, but must be reported under Intrastat.   

Celantra Expert Solutions

The ERP system implementation does not automatically fulfill these requirements, unless great care is taken in the accurate design and data preparation.  Celantra Systems offers facilities and configurations to ensure vendors, customers, and items are classified correctly and assignments are validated and audited.  In addition, our unique approach generates a single repository of transactions which are used for all customs, Intrastat, and VAT reports.  This methodology allows built-in reconciliation facilities between the various reports.  Any audit and drill-down for any of the reports will lead to the identical source data.  The same approach is used to configure the detailed requirements for reporting on customs-free warehouse transactions and customs-free zones.  Your business will be secure in the knowledge that auditors will be provided correct, complete, and reconcilable information in any of these areas.

Testing, Documentation and Training

Celantra Systems provides pre-formated ERP configurations which are adapted to the requirements of each company.  We ensure that all these configurations are extensively tested in collaboration with the key users, finance and tax departments and reviewed by internal and external auditors. We also provide the training and documentation of business processes and technical setups.  Your key users and your IT group will be able to maintain the configurations and make adjustments as business or tax requirements change.

 
Login