Intrastat Denmark

Intrastat serves as a statistical framework for companies involved in trade within the EU, aiming to monitor the flow of goods and gather foreign trade data. This data plays a crucial role in shaping trade policies and conducting sector-specific analyses.

When a business's trade with other EU member states exceeds a certain threshold, it is required to report the receipt and shipment of goods. Businesses must provide Intrastat declarations, detailing the goods they send to or receive from other EU countries.

Should you seek further information about Intrastat in Denmark, we are available to assist you.

Intrastat - What it is and why it matters?

In addition to submitting periodic VAT returns and/or European Sales Listings (ESL), businesses engaged in international trade within the EU may also need to adhere to Intrastat obligations.

The Intrastat platform enables businesses to generate and report data on trade between EU countries and regions. This information is essential for compiling statistics for the Balance of Payments and National Accounts, and it is also used by government ministries to shape trade policies and negotiate trade agreements. Consequently, there are strict quality standards for the accuracy of this data. Each EU member state sets specific reporting thresholds for Intrastat, which define the minimum value of goods that must be declared, and these thresholds can change over time. It is important for businesses to remain informed of any updates and provide accurate data to meet Intrastat compliance requirements. Since January 1, 1993, Intrastat has replaced customs declarations as the primary source of trade statistics within the EU.

The role of Intrastat in shaping EU trade

Intrastat plays a critical role in supplying government agencies with the data needed to formulate trade policies, plan transport infrastructure, and evaluate market conditions. By collecting details on goods exchanged between EU member states, Intrastat helps in identifying potential VAT fraud, ensuring precise trade statistics, and guiding policy-making. As a result, it is a vital tool both for businesses engaged in intra-EU trade and for the authorities overseeing trade regulation.

For businesses involved in intra-EU trade, the insights derived from Intrastat data go far beyond mere regulatory requirements. By examining this data, companies can uncover patterns and trends in the movement of goods between EU countries, helping them spot high-demand products and new market opportunities. These insights can be instrumental in shaping strategic choices, such as prioritizing sales efforts in regions with higher demand or establishing additional distribution centers. In addition, the data offers businesses a comprehensive view of market conditions and areas of potential growth, guiding decision-making processes. It also enables companies to track how changes in regulations affect trade flows, allowing them to adjust their strategies accordingly. Ultimately, utilizing Intrastat data empowers companies to make informed, data-driven decisions that strengthen their market presence and competitiveness within the EU.

If a business is registered or based in a European Union member state and engages in intra-community trade, whether through the arrival or dispatch of goods, it must file an Intrastat declaration once it surpasses the threshold set by that country. This obligation pertains to the total value of goods traded within the EU’s internal market, whether through purchases or sales.

Filing Intrastat declarations in Denmark

When the thresholds specified by the Intrastat customs code are exceeded for intra-community transactions, filing a Danish Intrastat declaration becomes mandatory. Should the volume of intra-community arrivals or dispatches surpass the set threshold within the year, the declaration must be submitted in the month when this threshold is met.

In the Danish Intrastat report, you'll find sections covering aspects like the frequency and due date of Intrastat returns, as well as details related to Intrastat returns in Denmark.

The electronic reporting form for Intrastat requires various details, including:
- a description of the goods,
- the commodity code,
- delivery terms,
- mode of transport,
- countries of origin and destination,
- weight and/or quantity,
- invoice value.

In Denmark Intrastat returns, like in many EU countries, are submitted on a monthly basis, aligned with the calendar month, and must be filed by the 10th working day after the reporting month ends. There are two distinct deadlines for filing:
- an earlier deadline for larger businesses (group 1),
- a later deadline for smaller businesses (group 2).

Businesses will receive notifications from the Danish authorities regarding their group classification and reporting obligations.

Neglecting to track arrivals (goods entering Denmark from another EU member state) or dispatches (goods leaving Denmark for another EU member state) could lead to penalties and fines. Ensuring accurate and timely submissions helps businesses meet Intrastat requirements and avoid such penalties.

Navigating Intrastat thresholds in Denmark

The invoice value sets the thresholds for Intrastat reporting. Authorities regularly track these thresholds and often issue letters to taxpayers requesting the submission of any outstanding Intrastat returns.

Intrastat encompasses two primary statistical thresholds: the basic threshold and the detailed threshold. The detailed threshold is set for much higher transaction values compared to the basic threshold. A key difference between them lies in the extent of data required. If traders exceed the basic threshold but not the detailed one, they are required to file an Intrastat declaration with a more streamlined dataset.

Starting January 1, 2024, Denmark has revised its Intrastat reporting thresholds as follows:
- Arrivals: DKK 22 million (approximately €3 million), an increase from DKK 13 million.
- Dispatches: DKK 11 million (approximately €1.5 million), up from DKK 10 million.

The thresholds are evaluated on an annual basis, aligned with the calendar year. Once a company meets the reporting requirement, it must maintain filings for the full calendar year before it can discontinue. For instance, if a company exceeds the arrivals threshold in March 2024, it will need to submit Intrastat returns for arrivals through to December 2025.

How to report exports and imports in Danish Intrastat

Filing with Intrastat becomes compulsory when a company’s trade with other EU countries and Northern Ireland exceeds certain thresholds.

Within the Intrastat framework, the system checks if all businesses obligated to report have met their requirements. If a company fails to comply, it receives a written reminder and might incur a handling fee.

A vital aspect of Intrastat declarations in Denmark is the use of commodity codes, which employ an 8-digit system for categorizing goods in both external and intra-EU trade statistics. To ensure accuracy and relevance, the Combined Nomenclature (CN) system undergoes annual updates, incorporating supplementary units as needed. For importers, each type of goods (identified by an item code) imported within the reference month must be reported separately, provided the transaction type and partner country within the EU, including Northern Ireland, are consistent. Exporters, on the other hand, must classify their item entries according to the country of origin and the VAT number of the recipient.

Understanding Danish Intrastat reporting requires recognizing that it encompasses a wide array of transactions beyond mere import and export. The physical movement of goods, which is the most frequently reported type in Intrastat, involves tracking the movement between Denmark and other EU countries, including Northern Ireland. For example, if goods are transferred from a warehouse in Denmark to one in Germany, an Intrastat report is necessary, even if the goods are not sold. When goods are returned from a buyer in another EU country, such returns must be reported separately. The nature of the return, whether due to defective products or excess stock, influences how it is reported.

Transactions involving processing or repair also need to be reported. If goods are sent to another EU country for these purposes and then returned, both the initial and return shipments must be documented, often requiring detailed information on the goods and the processing or repair work done. Ownership transfers without physical movement of goods must also be reported if they impact trade statistics. For instance, a sale of goods stored in consignment stock in another EU country, where ownership changes without moving the goods, falls under this category. For businesses with operations in multiple EU countries, intra-company transfers, such as moving goods between branches across borders, are reportable. This includes not only finished goods but also raw materials and components. Lastly, transactions involving the leasing, hiring, or loaning of goods across borders for more than 24 months are subject to Intrastat reporting. Despite the lack of ownership change, the movement of goods must still be recorded.

To fulfill Intrastat obligations, it is crucial for businesses to accurately capture and report all relevant transactions. Detailed reporting is necessary for each transaction type, often requiring data such as the value of goods, net mass, transaction nature, and the countries of origin or destination.

This requirement extends beyond just large corporations to include all businesses engaged in cross-border trade that exceed the established thresholds, ensuring that even smaller enterprises play a role in contributing to trade statistics.