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Changes in Intrastat requirements from 2022

Manis Banskota, Manager, VAT
23/12/2021
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From 1 January 2022 there will be a reduction to Intrastat compliance requirements for UK businesses, with businesses in Great Britain (GB) no longer having to file Intrastat (arrivals) declarations for goods moving from the EU to GB on or after 1 January 2022.

Background

Intrastat is an EU regime to collect trade statistics on the movement of goods between EU Member States. When the UK exited the EU, it agreed to continue to require UK businesses to file Intrastat returns for most goods arriving into Great Britain from the EU. That obligation ceases for movements taking place to Great Britain from the start of 2022. This is because HMRC can obtain trade data from the customs import declarations that organisations must make when importing goods into Great Britain.

Where applicable, businesses should ensure though that they submit the Intrastat return due for movements of goods taking place in December 2021 (due date of 21 January 2022).

What is continuing?

Intrastat compliance requirements will continue for movements of goods between Northern Ireland and the EU. This is because of businesses based in Northern Ireland continue, for now at least, to have a dual status of being treated as if they are still part of the EU VAT system as being a member of United Kingdom.

From 1 January 2022, the following Intrastat reporting, subject to the relevant thresholds, will still be required for movement of goods.

  • Goods imported into Northern Ireland (NI) from the European Union (EU).
  • Goods exported from NI to the EU.

Thresholds and other new changes?

From 1 January 2022, there are some changes in thresholds and reporting requirements for movement of goods between Northern Ireland and the EU.

The following exemption thresholds will apply for the movement of goods between Northern Ireland and the EU.

  • Up to £500,000 for arrivals (NI imports from EU).
  • Up to £250,000 for dispatches (NI exports to EU).

Changes in reporting requirements are mainly in Dispatches, where there will be some additional information required such as the customer’s VAT ID and country of origin of the goods.

Our guidance on ‘Completing the UK VAT Return’ may be useful, when considering the above changes for the completion of the UK VAT return.

Insight

Guide on how to complete your VAT firm if you trade with businesses in the EU and/or worldwide.
Unsure if you have paid import VAT and if so how it is to be reclaimed?
We recommend action is taken now to be ready for 1 April 2022
Guide on how to complete your VAT firm if you trade with businesses in the EU and/or worldwide.
Unsure if you have paid import VAT and if so how it is to be reclaimed?
We recommend action is taken now to be ready for 1 April 2022

Contact us

Robert Marchant
Robert Marchant
Partner, VAT and Customs Duty services
London
Rob Janering
Rob Janering
Partner, VAT and Customs Duty services
London