This article provides information about Intrastat reporting for the trade of goods and, in some cases, services among countries/regions of the European Union (EU). It provides an overview of the reporting process, and describes the required settings and prerequisites.
Intrastat is the system for collecting information and generating statistics about the trade of goods among countries/regions of the European Union (EU). Intrastat reporting is required whenever a product crosses the border of another EU country/region. In several countries/regions, Intrastat reporting also applies to services. Mandatory and optional elements can be collected in Intrastat reporting. The following elements are mandatory: the value-added tax (VAT) number of the party that is responsible for providing information, the reference period, the flow (arrival or dispatch), the eight-digit commodity code, the partner member state (member state of consignment on arrivals and member state of destination on dispatches), the value of the goods, the quantity of the goods (net mass and supplementary unit), and the nature of the transaction. Countries/regions can also collect optional elements under various conditions. Some optional elements are the country/region of origin, the delivery terms, the mode of transport, a more detailed commodity code than CN8, the region of origin on dispatches and the region of destination on arrivals, the statistical procedure, the statistical value, a description of the goods, and the port/airport of loading/unloading.
Overview of the Intrastat reporting process
The following sections describe the overall flow of information that is used for Intrastat reporting.
1. Enter a transaction that crosses the border of another EU country/region
A customer invoice, free text invoice, purchase invoice, project invoice, customer packing slip, vendor product receipt, or transfer order is transferred to the Intrastat journal only if the country/region type of the destination (on dispatches) or consignment (on arrivals) is EU. This feature was extended for Microsoft Dynamics 365 for Operations (1611) and allows you to specify lading addresses for an intra-community transaction. If a lading address differs with a vendor business address (or customer business address for return order) the Intrastat reporting will operate with this information. When you create a sales order, free text invoice, purchase order, vendor invoice, project invoice, or transfer order, some fields that are related to foreign trade have default values in the document header or on the line. The default transaction code is taken from the corresponding field on the Foreign trade parameters page. The default commodity code, country/region of origin, and state/province of origin are taken from the item. You can change the default values and can also fill in other foreign trade–related information: the statistics procedure, transport method, and port.
2. Use the Intrastat journal to generate information about trade among EU countries/regions
For statistical purposes, you generate information about trade among EU countries/regions every month. You can transfer transactions from a free text invoice, customer invoice, customer packing slip, vendor invoice, vendor packing slip, project invoice, or transfer order, according to the transfer criteria that are set up on the Foreign trade parameters page. Alternatively, you can enter transactions manually. You can manually update transferred transactions in the Intrastat journal, if any updates are required. Under specific conditions that are set up on the Compression of Intrastat page, you can compress the transactions in the Intrastat journal. Some countries/regions let you apply a small transaction threshold. You can then report transactions that are below that threshold under the specified commodity code. You can update the commodity code on the corresponding Intrastat journal lines, based on the Minimum limit setting on the Foreign trade parameters page. You can also compress those transactions, based on the Compression of Intrastat setting. You can validate the completeness of the transactions in the Intrastat journal, based on the Check setup setting on the Foreign trade parameters page. The data in corresponding fields might be validated for completeness: country/region, state or province, weight, commodity code, transaction code, additional unit, port, origin, terms of delivery, transport method, and tax exempt number. Transactions that aren't completed will be marked as not valid.
3. Use the Intrastat journal to report information about trade among EU countries/regions
For statistical purposes, you report information about trade among EU countries/regions every month. You can print the Intrastat report, based on the Report format mapping settings on the Foreign trade parameters page. You can also generate an electronic file, based on the File format mapping settings on the Foreign trade parameters page. For more information about Intrastat reporting, including required prerequisites, see the Intrastat reporting task recordings:
- Generate an EU Intrastat declaration,
- Transfer transactions to the Intrastat,
- Specifying lading address for an intra-community transaction.
The following table lists the prerequisites for Intrastat reporting.
|Address setup||Set up International Organization for Standardization (ISO) codes for countries/regions.|
|Legal entity||Set up tax exempt numbers for import/export, the branch number extension for import/export, and the Intrastat code that is assigned to the legal entity.|
|Product category hierarchy (sales hierarchy, procurement hierarchy)||Assign the Intrastat commodity codes to the category nodes on the Commodity codes tab of the Category hierarchy page. When you assign a commodity code to a parent category node, that code is applicable to all child category nodes. The selected commodity codes will be available in the Selected view when you select a commodity code in the released product details, and on sales order, purchase order, and transfer order lines.|
|Released product details||Set up the following foreign trade data for released products:
|Customers||Set up the customer delivery address in the EU country/region.|
|Vendors||Set up the vendor address in the EU country/region.|
|Miscellaneous charges||Set up the miscellaneous charges code to include in the invoice amount, the statistical amount, or both. On the Charges codes page, on the Foreign trade tab, enable Intrastat invoice value to include the charges amount in the invoice value, and enable Intrastat statistical value to include the charges amount in the statistical value.|
|Electronic reporting||Set up electronic reporting configurations to export Intrastat data in an electronic file that has the format that is requested by the relevant authorities, and to preview Intrastat data in a user-friendly, readable format (for example, in Microsoft Excel).|
|Warehousing||Associate vendor accounts with warehouse codes for filling tax exempt number when transferring Transfer order.|
The following sections describe the settings that are required for Intrastat reporting.
Set up all required Intrastat-related lists
|Commodity codes||Set up a category hierarchy of type Commodity code, and enter all commodity codes according to the combined nomenclature list. For each commodity, you set up the following information:
|Transaction codes||Set up the nature of the transaction according to your country's/region's requirements. For each transaction code that you set up, you must set up the rules for calculating invoice amounts and statistical amounts for transfer orders and sales/purchase orders.
|Transport methods||Set up the transport mode according to your country's/region's requirements. For each delivery mode, you can set up a default transport method on the Foreign trade tab.|
|Ports||Set up the port/airport of loading/unloading if this information is collected by your country/region.|
|Statistics procedures||Set up the statistical procedure if this information is collected by your country/region.|
Set up rules for compressing Intrastat transactions
On the Compression of Intrastat page, you can select the fields to use for compression. All transactions that have the same combination of values for the selected fields in the Intrastat journal will be compressed into a single transaction when you run the Compress function in the Intrastat journal.
Set up foreign trade parameters
Use the Foreign trade parameters page to set up the parameters in the following table.
|Agent contact information||Specify the agent's name, address, tax exempt number, telephone number, and fax number.|
|Country/region properties||Set the country/region of the current legal entity to Domestic. Set the country/region of EU countries/regions that participate in EU trade with the current legal entity to EU. For each country/region, you also identify country/region code for foreign trade purposes.|
|Number sequence||Specify the number sequence for the Intrastat journal.|