Intra EC Trade

Intra ec Trade

Although trade between EU Member States under Single Market Rules is allegedly free of Customs controls, rules for Excise and VAT are very much in force because each EU Member State has been allowed to keep and police its own Excise and VAT rates, and determine how they are accounted. 

Additionally, application for any of the very few subsidies remaining for inter EU Trades, perhaps for agricultural products, might need prior notice to move, and some ‘sensitive’ commodities, usually military goods or items which might be put to a military purpose, still require Licences [Dual Use] to move between EU Member States.

Transactions with other EU Member States of commodities which move as either Acquisitions or Despatches, exceeding certain value thresholds, trigger a requirement for the UK Trader to make monthly statistical declarations – under INTRASTAT.

Martintrux can submit your INTRASTAT declaration electronically, and will provide a receipt confirming the amounts to be transferred to a VAT Return as EC Acquisitions or EC Sales.

EC Despatches are to be included to any other EC Sales for the period and submitted by the Trader on the relevant EC Sales List.


Accounting Excise Goods across EU Borders.


Trade for Acquisitions from, or Despatches to other EU Member States is subject to very few physical controls.  Goods ‘in EU free circulation’, deemed to have no outstanding control or Duty implications, and not Excise goods or requiring any Licence, and to which no claim is going to be made to the Government, can usually be shipped without notice to HM Revenue and Customs or any other Government Department as usually the only obligations for Traders are Statistical reporting and VAT accounting

UK VAT can be VAT Zero-Rated (for commodities otherwise subject to VAT at the Standard Rate) if the sale is for goods despatched to a buyer registered for VAT locally in the EU Member State of physical receipt.  The VAT Registered Recipient accounts for VAT locally under the Reverse Charge Procedure.  In order to qualify for this Zero-Rating, the buyer’s valid VAT number must be quoted on the Sales Invoice, and the sold goods must physically be delivered for the buyer to take title in that EU Member State.