If you are VAT registered and supply goods or services to another VAT registered business in a different EU country then you must report these supplies to HMRC in the form of an EC Sales List.
In this list you need to give information of the supplies you have made to them. If the value is over £35,000 per month then this needs to be completed each month. Otherwise an EC Sales List is only needed every three months. You need to provide
- The VAT number of the customer you provided goods/services to (you must collect this!)
- The country or countries you have supplied too
- the Value of each of these goods or services provided in pound sterling (the total should match Box 8 in your VAT return, if it covers the same period)
Why do you need to fill one out?
HMRC want this information because firstly they want to build up statistics about how many, and which goods are traded between EU countries.
More importantly they will pass on the relevant information to the tax authorities of the countries you have supplied too who use it to check if your suppliers have been handling VAT correctly. If you receive goods from another EU country the reverse process happens where they fill out a sales list which gets passed on to HMRC.
- Always collect the VAT number of your European business customers before you invoice them
- Make the EC Sales List periods cover the same periods as your normal VAT returns. This will keep everything a lot simpler.
- Make sure your EC Sales List match Box 8 of your VAT returns (HMRC will be doing that check!). Box 8 is your declaration of sales excluding VAT to EC Member States